Sebi bars Dolphin Universal from raising public money

Market regulator Sebi today barred Dolphin Universal Rural Development and its directors from mobilising money by issuing securities, with immediate effect.
The move follows Securities and Exchange Board of India (Sebi) receiving complaints from investors alleging non-repayment of their invested money in securities issued by Dolphin Universal Rural Development Ltd (DURDL).
In the complaints, it was alleged that Dolphin group consisting of several companies had raised Rs 600 crore from investors.
Sebi found that DURDL had raised over Rs 99.79 lakh from 92 investors through issuance of secured Non Convertible Redeemable Debentures (NCRDs) in 2012-13 and 2013-14.
The company, through such activity, had allegedly violated various norms, Sebi said.

The regulator observed that allotment of securities by the company 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.
"The company is engaged in fund mobilising activity from the public, through the offer and issuance of NCRDs shares," and has contravened the provisions of the Companies Act, Sebi said in an interim order.
Accordingly, Sebi has restrained the company and its directors from mobilising any fresh funds through the issue of securities to the public, and/or invite subscription, in any manner whatsoever, either directly or indirectly or through 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 capital market watchdog 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 the public.
These directions "shall come into force with immediate effect and shall continue to be in force till further directions".