Sebi bars Ganga Sagar Foods & Beverages from raising funds from public

Markets regulator Sebi Tuesday barred Ganga Sagar Foods and Beverages from raising funds from public with immediate effect.

Besides, the regulator has asked the firm and its seven present and former directors not to buy, sell or deal in securities market either directly or indirectly with any listed company.

The move comes after the regulator received complaints that the firm is not refunding the money to the investors raised through secured redeemable non-convertible debentures (NCDs).

Following the complaints, Sebi found that the firm had collected at least Rs 43 lakh from 71 investors during 2012-13 by issuing the NCDs.

As the number of investors were more than 49, the offer was prima facie a public issue for which the firm was required to register its prospectus with the Registrar of Companies (RoC), followed by compulsory listing, among other requirements.

However, it failed to do so, the regulator said.

Ganga Sagar is ''prima facie" engaged in a fund-mobilising activity from the public, through the issuance of NCDs, without complying with the necessary requirements, the Securities and Exchange Board of India (Sebi) said.

Accordingly, Sebi directed the firm to cease mobilising fresh funds through offer and issuance of NCDs and ordered its directors -- Gopal Saha, Sachin Ray, Narayan Paul, Sekh Ranjan Ali, Somnath Santra and Sanatan Banerjee -- not to dispose of the assets acquired through the fund raised.

The regulator also barred debenture trustee Madhumita Saha from dealing in markets either directly or indirectly for not registering with Sebi to act as debenture trustee for the offer of NCDs.