Sebi bars Kolkata-based Asoka Life Science from raising funds

Taking strict action against illicit fund raising activities, Sebi has barred Kolkata-based Asoka Life Science from mobilising funds through issuance of securities as well as accessing capital markets.
The company allegedly raised funds from more than 6,000 investors during the period from 2007-08 to 2011-12 through issue of 'Secured Redeemable Non-Convertible Debentures'.
Securities and Exchange Board of India (Sebi) found that these activities by the firm were in prima facie violation of various capital market norms.
The market regulator has directed the firm not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.

The firms as well as its past and present directors have been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.
Further, the Sebi order has asked the company and its directors not to divert any funds raised from public at large.

The market regulator observed in its order that the company had issued NCDs to over 50 persons, which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.

Accordingly in an interim order today, Sebi said that steps were required to be taken in the instant matter "to ensure only legitimate fund raising activities are carried on by Asoka Life Science and no investors are defrauded".
Asoka Life Science has also been asked to provide a full inventory of all its assets and properties as well as furnish complete and relevant information sought by Sebi.
Sebi has also prohibited Dilip Mukherjee and Soumen Chatterjee from continuing with their present assignment as debenture trustees in respect of the offer of NCDs of Asoka Life Science and also from taking up any new assignment or involvement in any new issue of debentures.

According to the regulator, the debenture trustees failed to meet the eligibility criteria specified under the norms.
Sebi received a complaint on May 21, 2014, alleging mobilisation of funds by Asoka Life Science.