Sebi orders Icore E-Services to refund investors' money

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Regulator Sebi today ordered Icore E-Services Ltd and its directors to refund the money that the company had collected illegally from public and has also barred them from the markets for at least four years.
The company had collected at least Rs 45 crore through the issuance of securities from investors between 2007-2008 and 2010-11, Securities and Exchange Board of India (Sebi) said in an order.
Securities were issued to over 50 people and accordingly the offer qualified to be a public issue, and required compulsory listing of such securities on a recognised exchange. However, the firm did not comply with the provision.

Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
"Considering the fact that during the financial year 2007-2008 and 2008-2009, the company had to go to thousands of investors to mobilise Rs 4-5 crore and the money mobilised by the company during 2009-2010 and 2010-2011 is more than Rs 45 crore, I am inclined to conclude that the number of investors from whom the money was mobilised for issuance of equity shares is more than 49," Sebi Whole Time Member G Mahalingam said.
Accordingly, Sebi has directed Icore E-Services and its promoters/directors -- Anukul Maiti, Kanika Maiti, Swapan Kumar Roy, Radhashyam Giri, Tapan Kumar Chatterjee, Saral Ranjan Sengupta, Amal Bhattacharya, Chandan Dey and Mahadeb Gayan -- to jointly and severally refund the money collected through the allotment of equity shares along with an interest at the rate of 15 per cent per annum within three months.

After completion of refund, they have been directed to file a report of such completion with Sebi, within seven days, certified by two independent chartered accountants.
Further, Sebi has prohibited the company and its directors from the securities markets till the refund and a further period of four years from the date of completion of the refund to investors. Also, they have been restrained from associating themselves with any listed public company during the period under review.
Sebi's order "shall be subject to the directions passed or to be passed by Calcutta High Court in the matter of Icore Group of companies".