Sebi bars Chakra Infrastructure, directors in fresh case

Sebi has restrained Chakra Infrastructure and its 11 directors from mobilising funds through issuance of equity shares as well as from the capital market till further directions.
The latest development comes close on the heels of the company and its directors being banned for four years from the capital market in a separate case related to illegally raising money by issuing securities.
The present order, which has barred the entities till further directions, was passed on April 22 -- two days after the first ruling in the other case.
According to the 11-page order dated April 22, the company had allotted equity shares to 196 investors during the financial year 2012-13 without following the relevant Sebi norms.

It was to be a public issue that requires compulsory listing on a recognised stock exchange but the company failed to do so.
For this violation, the Securities and Exchange Board of India (Sebi) has barred the firm and its directors from the capital markets till further orders.

Among others, these entities have been prohibited from issuing offer documents, advertisement for soliciting money from the public for the issue of securities.
Further, the watchdog has directed them not to divert any funds raised from public at large.
The company would also have to provide a full inventory of all its assets and properties, details of all their bank accounts, demat accounts and holdings of shares/ securities, if held in physical form.