Sebi bans two cos from raising funds from investors

Markets regulator Sebi has barred two companies -- Regal Hitech Agro Projects (India) Ltd and G R Agro Project Ltd -- from garnering fresh funds from the public through the issuance of securities till further directions.
The Securities and Exchange Board of India (Sebi) found that Regal Hitech and G R Agro had raised funds by issuing redeemable preference shares (RPS) in 2012-13 to 204 and 302 people respectively.
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 a recognised stock exchanges.
Among others, the firms were also required to file their prospectus, which it failed to do.

In a similar worded orders, Sebi said there was no other alternative but to take recourse through an interim action against these companies and their directors, for preventing these firms from further carrying on with their fund mobilising activity under the RPS.
Accordingly, Sebi said: Regal Hitech and G R Agro "shall not mobilise any fresh funds from investors through the Offer of RPS or through the issuance of 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 markets watchdog has prohibited the companies and their directors from accessing the securities market till further orders.

Also, they have been directed not to dispose off any of the properties or alienate or encumber any of the assets owned/ acquired by the firm through RPS without prior permission from the regulator.
(REOPENS DCM 76)
In two separate orders, Sebi has prohibited Arcava Enterprises and Swabhumi Real Estate India from raising funds from investors till further directions after finding these companies guilty of violating public issue norms.
These companies and their directors have also been barred from accessing the securities market.
Arcava Enterprises and Swabhumi Real Estate had mobilised funds by issuing redeemable preference shares (RPS) to 344 and 141 people, respectively.