Sebi orders URO Agro to repay investors

Regulator Sebi today ordered URO Agro India Ltd and its current as well as former directors to refund the money the company had collected illegally from public and also barred them from the markets for at least four years.
The company had collected over Rs 74 lakh through the issuance of non-convertible debentures (NCDs) from at least 131 investors between 2011-12 to 2013-14, 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.
Accordingly, Sebi has asked the firm and its directors -- Sachindra Nath Bhattacharya, Ipsita Das Giri, Ajit Kumar Routh, Bibekananda Maiti, Biswapriya Giri, Prasun Mondal and Sanjoy Chowhan -- to jointly and severally refund the money collected during their respective period of directorship through the issuance of NCDs along with an interest at the rate of 15 per cent per annum.
Bhattacharya, Das Giri, Routh and Maiti had resigned from the company's directorship in 2013.

After completion of refund, they have been directed to file a report of such completion with Sebi, within three months, certified by two independent chartered accountants.

In case they fail to comply with the directive, Sebi may recover such amounts in accordance with provisions of securities laws.
Further, Sebi has prohibited the company and its present as well as former 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, such directors have been restrained from associating themselves with any listed public company during the period under review.

Trustees of Secured Debentures Trust of URO Agro India represented by its trustees -- Ram Sunder Bhattacharya and Pratima Roy -- have also been restrained from accessing the securities market for four years, the regulator noted.
Earlier in June, the regulator had ordered five URO Group firms -- URO Walkers, URO Infra Reality India, URO Infotech, URO Lifecare and URO Hygienic Foods -- and their respective directors to refund the money, which they had illegally collected from the public, within three months.