Sebi restricts RTC Properties from capital markets

Markets regulator Sebi today barred RTC Properties India Ltd from the securities market, till further directions, for violating public issue norms.
A Securities and Exchange Board of India (Sebi) probe found that the company had mobilised Rs 4.52 crore from 1,143 investors between 2009-2012 by issuing Redeemable Preference Shares (RPS).
The regulator found that the firm had issued shares to over 50 persons which under the rules made it 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.
"...RTC Properties is prima facie engaged in fund mobilising activity from the public, through the offer of RPS," and as a result has violated the provisions of the Companies Act, Sebi said in an interim order.

Accordingly, Sebi has restrained RTC Properties and its past and present directors and promoters from "accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions."
It has also been asked to provide a full inventory of all its assets and properties as well as not to dispose of any of the properties or alienate or encumber any of the assets owned by the company through the issue of RPS, without prior permission from Sebi.
Further, Sebi has asked the entities not to divert any funds raised from public at large and provide all the information sought by the regulator.