Sebi bars Pious Agro Industries from raising public money

Capital markets regulator Sebi today barred Pious Agro Industries from raising funds from investors through issue of securities and also prohibited the firm and its directors from dealing in capital markets till further directions.
The move follows as Securities and Exchange Board of India (Sebi) receiving a complaint against Kolkata-based Pious Agro Industries.
Sebi found that the company had allotted 15.76 lakh redeemable preference shares (RPS) amounting to Rs 1.57 crore by way of public issue in 2010-11 and 2011-12.
The company through such activity had allegedly violated various norms, Sebi said.
The regulator observed that allotment of shares by PAIL 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.

In an interim order Sebi said: "Pious Agro is prima facie engaged in fund mobilising activity from the public, through the offer of RPS," and as a result of such activity has violated the provisions of the Companies Act.

Accordingly, Sebi said "Pious Agro shall forthwith cease to mobilise any fresh funds from investors through the offer of RPS or through issuance of any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly 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 regulator 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 public.
It has also asked the company to provide a full inventory of all its assets and properties.
These directions would take effect immediately and would be in force until further orders, Sebi added.