Sebi bans Real Sunshine Corp, directors from markets

Regulator Sebi has banned Real Sunshine Corp and its eight directors from the securities market for at least four years and directed them to refund the money which the company had collected illegally from public. According to a Sebi order dated February 15, Real Sunshine Corp - earlier known as Real Sunshine Agrotech - had issued and allotted redeemable preference shares (RPS) to at least 4,525 investors during financial years 2009-10, 2010-11 and 2011-12 and raised about Rs 8.49 crore. Since the securities were issued to more than 49 people, the offer of RPS qualified to be a public issue and required their compulsory listing on a recognised stock exchange. However, Real Sunshine did not comply with the provision. Among other requirements, the firm was required to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do. The firm and its directors have to refund the money with an annual interest of 15 per cent. Besides, the nine entities have been directed not to access the securities market and prohibited from buying, selling or dealing in it till the expiry of four years from the date of completion of refunds to investors. The directors have also been restrained from associating themselves with any listed public company till the conclusion of four years from the date of complete refund. As per the order of the Securities and Exchange Board of India (Sebi), the directors are Abdul Wahid, Pradeep Ojha, Anil Kumar, Bipin Singh Yadav, Rajkumar Yadav, Atendra Kumar, Siba Prosad Ghosh, and Jitendra Singh Yadav.