Sebi bars Purusattam Infotech from raising funds

Market regulator Sebi today barred Purusattam Infotech Industries from raising money via issuance of securities and has also barred the firm as well as its directors from the capital markets.
The Securities and Exchange Board of India (Sebi) found that Kolkata-based Purusattam Infotech had mobilised funds through the issue of preference shares and as a result had "prima facie violated" various capital market norms.
Sebi observed that the company had issued shares 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.

"Steps ... Have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by Purusattam Infotech Industries Ltd and no investors are defrauded," Sebi said in an order today.
Consequently, the market watchdog has directed the firm not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The company and its directors have also been "prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders".

Sebi observed that Purusattam Infotech had issued and allotted preference shares to a total of 2089 investors and mobilised an amount of Rs 2.65 crore during the Financial Years 2009-10 and 2010-11.
Further, the Sebi order has asked the company and its directors not to divert any funds raised from public at large.
The company 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 in the matter.