Sebi prohibits Weird Infra from raising public money

Market regulator Sebi has barred Weird Infrastructure Corporation from raising money and has also restricted the firm as well as its directors from accessing the stock markets till further directions.
The Securities and Exchange Board of India (Sebi) found that Weird Infrastructure had raised funds from investors via issue of 'Secured Non-Convertible Redeemable Debentures (NCDs)' and as a result had "prima facie violated" various norms.
Sebi observed that the company had issued NCDs 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.

Saying that steps were required to ensure that Weird Infrastructure does not defraud investors, Sebi in an order said there "is no other alternative" but to take interim action against the firm, its directors and debenture trustee to prevent it from fund mobilisation.
Accordingly, the market regulator has directed the firm not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The firms and its directors have been prohibited from capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities "till further orders".

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 the regulator relating to the matter.
Besides, Sebi has barred Harish Chandra from "continuing with his present assignment as a debenture trustee in respect of the offer of NCDs of the company and also from taking up any new assignment or involvement in any new issue of debentures, etc in a similar capacity, from the date of this order till further directions."

Chandra had prima facie failed to meet the eligibility criteria specified under the provisions of the Debenture Trustees Regulations, Sebi said.
The persons barred by Sebi include the company's present as well as past directors.