Sebi restrains Prayas Projects from securities market

Sebi today banned Prayas Projects India Ltd (PPIL) and its directors from the securities market for illegally raising money through issue of secured Redeemable non-convertible debentures (NCDs).
Tripura-based PPIL had raised more than Rs 86 lakh from about 154 allottees through issue of secured non-convertible redeemable debentures during 2011-12 and 2012-13 periods.
In its order, the Securities and Exchange Board of India (Sebi) restrained the company as well as its past and present directors have been restrained from accessing the securities market.
The individuals who have been barred are Kaizar Biswas, Mohammad Jiyaur Rahaman, Abu Sama Molla, Ashraful Hoque and Ajijur Rahaman.

These entities have also been prohibited from issuing prospectus or any offer document or come out with advertisement for soliciting money from the public for the issue of securities, in any manner till further directions.
Sebi said that steps have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by PPIL and no investors are defrauded.
"In light of the same, I find there is no other alternative but to take recourse through an interim action against PPIL, its directors alongwith its debenture trustee, Prayas Debenture Trust... For preventing that company from further carrying on with its fund mobilising activity under offer of NCDs," Sebi Whole Time Member S Raman said in the order.