Sebi bans Win Realcon, 14 directors from market

Sebi Tuesday banned Kolkata-based Win Realcon and its 14 present and erstwhile directors from the securities market for at least four years and directed them to refund the money collected illegally from investors.

In an order, the regulator said that the firm had issued and allotted redeemable preference shares (RPS) to 708 investors during the financial years 2011-12 and 2012-13 and raised at least Rs 1.18 crore.

Since the shares were issued to over 50 people, the offer of RPS qualified to be a public issue and required compulsory listing of securities on a recognised stock exchange. However, Win Realcon did not comply with the provision.

Among other requirements, the firm was to register a prospectus with the Registrar of Companies, which it failed to do.

Accordingly, the Securities and Exchange Board of India (Sebi) has directed Win Realcon and directors to refund the money collected by the company through the issuance of RPS, with an annual interest of 15 per cent.

Besides, the entities have also been banned from accessing the securities market till the completion of four years from the date of refund to investors. The directors have been restrained from associating themselves with any listed public company for similar duration as well.

Also, two promoters have been directed not to approach the securities market for four years.

The promoters and directors are Rajib Debnath, Joy Bhowmick, Raju Dey, Sanjib Podder, Amit Debnath, Shekh Nur Mohammad, Swapan Dutta, Rita Das, Partha Pratim Roy, Ranabir Das, Nirmal Mukherjee, Supriyo Sarkar, Sujay Pathak, Mahitosh Ganguly, Juthika Banerjee and Samit Debnath.

The order follows an interim ruling passed by Sebi in February 2016, wherein the regulator had directed Win Realcon not to mobilise any fresh funds from investors and banned the company and its promoters and directors from the securities market "till further directions".