Sebi bars Sun Techno International, directors from the market

Markets regulator Sebi today barred Sun Techno International Ltd (STIL) and its directors from mobilising funds from investors through issuance of securities.
The firm and its directors have also been restrained from accessing the market "till further directions", the Securities and Exchange Board of India (Sebi) said.
It was alleged that the company had raised funds illegally from investors through the issue of redeemable preference shares (RPS) and as a result, has "prima facie" violated various norms.
The firm had issued RPS to 322 investors between 2011-13, and mobilised funds amounting to Rs 59.70 lakh.
Since the firm had issued shares to over 50 persons, this qualified as a public issue of securities, requiring a compulsory listing on a recognised stock exchange.

It was also required to file a prospectus, among others, which it failed to do.

"STIL is prima facie engaged in fund mobilising activity from the public, through the offer of RPS and a result of the aforesaid activity has violated the provisions of the Companies Act, 1956," Sebi noted.
The company and its directors have also been prohibited from soliciting money from the public for the issue of securities in any manner, directly or indirectly, till further orders.
Further, Sebi has asked the company and its directors not to divert any funds raised from public and provide all the information sought by the regulator.

They have also been asked to provide a full inventory of all assets and properties as well as instructed not to dispose of any property or assets owned/acquired by the company through the issue of RPS, without prior permission from Sebi.
The directions "shall take effect immediately and shall be in force till further orders", Sebi said.