Sebi bars 2 Kolkata cos from raising money via securities

Cracking the whip on two Kolkata- based firms, Sebi today restricted Progress Cultivation Ltd and Multi Purpose Bios India from raising funds via issuance of securities and barred them as well as their directors from accessing the market.
The Securities and Exchange Board of India found that the firms had raised money through issue of 'Redeemable Preference Shares' and as a result of such activities had violated various norms.
It has directed the companies not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The companies and their respective directors have also been "prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders", Sebi said.

Besides, they have also been restrained from accessing the securities market, it added.
They have also been asked not to divert any funds raised from public at large and to provide full inventory of all their assets and properties.

Sebi observed that the two companies had issued shares to over 50 persons. That made it a public issue under the rules, requiring a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
Progress Cultivation Ltd had allegedly raised Rs 2.07 crore from investors. Its directors are Souvik Mistry, Bikash Howlader and Ajoy Das.

Meanwhile, Multi Purpose Bios had raised nearly Rs 6 crore from investors. Sebi has barred its directors Laxmi Kanta Das, Monalisa Mitra and its past director Mridul Kanti Bhaumik from the market.