Sebi bars Angela Agrotech raising public money

Sebi today barred Angela Agrotech from raising funds from investors through issue of securities, prohibiting the firm and its directors from dealing in capital markets till further directions.
The move follows as Securities and Exchange Board of India (Sebi) receiving a complaint against Angela Agrotech.
Sebi found that the company had allotted redeemable preference shares (RPS) worth Rs 2.15 crore to 88 people in 2012-13 and 2013-14. It had also issued debentures to the tune of Rs 6.32 lakh to 32 investors in 2013-14.
The company through such activity had allegedly violated various norms, Sebi said.
The regulator observed that allotment of shares by Angela Agrotech was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.

In an interim order Sebi said: "Angela Agrotech is prima facie engaged in fund mobilising activity from the public, through the offer of RPS," and as a result of such activity has violated the provisions of the Companies Act.

Sebi said: "Angela Agrotech shall forthwith cease to mobilise any fresh funds from investors through the offer of RPS or through issuance of any other securities, to the public/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions."
Further, the firm and its directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.

They have been restrained from accessing the securities markets, Sebi said.
The regulator also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from public.
These directions "shall take effect immediately and shall be in force until further orders.