Sebi restricts STPL Infra from raising money from investors

Capital markets regulator Sebi today barred STPL Infrastructures and its directors from mobilising money from general public through issuance of securities with immediate effect.
The move follows the Securities and Exchange Board of India (Sebi) receiving a reference from the Registrar of Companies (RoC), Madhya Pradesh & Chhattisgarh as well as Gwalior stating that STPL Infra issued secured debentures on private placement basis to more than 49 subscribers.
Sebi found that STPL Infra had raised Rs 48.91 lakh from 468 people through issuance of Non-Convertible Redeemable Secured Debentures (NCDs) during 2012-13.
The company, through such activity, had allegedly violated various norms, Sebi said.

The regulator observed that allotment of NCDs by STPL Infra was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
"The company is engaged in fund mobilising activity from the public, through the offer of NCDs," and as a result of such activity has violated the provisions...Of the Companies Act, Sebi said in an interim order.

Accordingly, Sebi has restrained the company and its directors from "mobilising any fresh funds from investors through the offer of NCDs or through the issuance of equity shares or any other securities to the public, and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".

Further, the firm and its directors-- Arindam Sarkar, Swapan Nandi and Dulal Chatterjee-- have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
They have been restrained from accessing the securities markets, Sebi said.
The capital market watchdog also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from the public.
Also, Sebi has prohibited Debenture Trustees STPL Debenture Trust (represented by its Trustee Amit Biswas) from continuing with its assignment in respect of NCDs issue of STPL Infra. It also barred it from taking up any new assignment in a similar capacity till further directions.

This order "shall come into force with immediate effect and shall continue to be in force till further directions".