Sebi bars BGIL, three top executives from capital mkts

Sebi today barred Bharatiya Global Infomedia Ltd and its three top executives from the capital market for 5 years for making false disclosures and mis-utilising IPO funds of about Rs 35 crore.
The Sebi order against Bharatiya Global Infomedia, Rakesh Bhatia (Chairman and Managing Director), Sanjeev Kumar Mittal (Executive Director) and Rajeev Kumar Agarwal (Manager, Finance) would come into effect immediately. It will take into account the prohibition already undergone by them.
The Securities and Exchange Board of India has directed the company to within six months "call back" Rs 23.46 crore IPO funds which were mis-utilised as well as Rs 11.15 crore that remains to be recovered from three firms in which it had made investments.

BGIL had Rs 34.70 crore proceeds from IPO in July 2011.
Sebi further said that the firm had mis-utilised proceeds worth Rs 12.5 crore in the garb of ICD investments in Sanjukta Vanijiya, Darshan Trade link, and Nihita Financial Services, out which Rs 11.15 crore remain to be recovered by the firm.
As per the order today, Bharatiya Global Infomedia and its executives are debarred from accessing the securities market "for a period of five years".

"The period of prohibition already undergone by Bharatiya Global Infomedia, Rakesh Bhatia, Sanjeev Kumar Mittal and Rajeev Kumar Agarwal, pursuant to the interim order dated December 28, 2011, shall be taken into account for the purpose of computing the period of prohibition imposed," it added.

It has asked the board of directors of the company to "ensure compliance" with the Sebi's orders and submit a monthly progress report to the regulator.
"Further, the board of directors shall also furnish to Sebi a compliance report duly certified by an independent Sebi registered Merchant Banker, other than the one who managed the IPO of Bharatiya Global Infomedia, within two weeks of the date of compliance of above direction," the order today said.
Sebi said that Bharatiya Global Infomedia had "actively concealed material information, suggested untrue facts, made false and inadequate disclosures in the RHP/Prospectus and mis-utilised/diverted the IPO proceeds".

"The said acts and omissions of Bharatiya Global Infomedia, apart from being in violation of the requirements of the ICDR Regulations, also show a fraudulent scheme or device on part of Bharatiya Global Infomedia to mis-utilise/ divert the IPO proceeds," it added.
"Subject to the applicable provisions of Companies Act, 1956 and Companies Act, 2013, as the case may be, Bharatiya Global Infomedia shall utilise the funds raised in the IPO for purposes disclosed in the Prospectus dated July 16, 2011," the Sebi order stated.