Sebi bans three cos from raising funds from public

Markets regulator Sebi today barred three companies -- IMAX Projects India, Suraksha Family Services and Digstar Projects -- from mobilising fresh funds from the public till further directions.
The regulator found that the companies mobilised capital from investors through issuance of redeemable preference shares (RPS).
IMAX Projects, Suraksha Family Services and Digstar Projects had issued preference shares to 2,181, 1,804 and 10,408 investors, respectively, between 2007-08 and 2012-13.
Since these shares were issued to more than 50 investors by each company, this qualified to be a public issue, which requires compulsory listing on recognised stock exchanges.
Among others, these firms were also required to file their prospectus, which they failed to do.

In three similarly-worded orders, Sebi said these companies "are prima facie engaged in fund mobilising activity from the public through the offer of redeemable preference shares and as a result of such activities, have violated the provisions of the Companies Act".

Accordingly, Sebi has asked these firms "not to mobilise funds from investors through the offer of RPS or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly, till further directions".
Besides, the Securities and Exchange Board of India (Sebi) has barred these three companies and their directors from accessing the securities market till further orders.

The directions shall take "effect immediately and shall be in force until further orders", Sebi said.