Sebi bars Pinnacle Ventures from securities market

Sebi today barred Pinnacle Ventures India Ltd (PVIL) and its eight directors from the securities market after they were found to have raised funds illegally through issue of preference shares.
They have also been directed to refund money collected from investors.
The capital market watchdog found that PVIL issued preference shares to 9,305 persons during 2011-12 and 2012-13, collecting around Rs 3.85 crore.
In an order today, Sebi said the debarment from the securities market would be in place for four years from "the date of completion of refunds to investors".
However, PVIL and the directors have been allowed to sell the securities for the purpose of refund.

The directors of the company against whom the order has been passed are Rohit Agrawal, Ram Kumar, Ashoke Ghosh, Kousik Sarker, Anjan Chatterjee, Tapas Sarkar, Sulalit Biswas and Tridib Narayan Basu.

"These directors are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with Sebi from the date of this order till the expiry of four years from the date of completion of refunds to investors," the order said.
They have to refund the money collected through the issuance of preference shares, including funds collected from investors, till date, pending allotment of securities, if any, with an interest of 15 per cent per annum compounded at half yearly intervals.

"I note that the company law court has ordered for the winding up of the company and also that an official liquidator has been appointed. However, a separate order is required to be passed wherein both the company and the directors are made liable for repayment under section 73(2) of the Companies Act, 1956.
"In so far as the liability of the company is concerned, this order needs to be harmoniously read with the orders... passed by High Court at Calcutta in the instant matter," Sebi Whole Time Member Prashant Saran said in the order.