Sebi slaps 4-yr ban on Life Care Infra, asks to refund money

Regulator Sebi today banned Life Care Infrastructures India Ltd along with its present and former directors from the securities market for at least four years and also directed them to refund money collected illegally from investors.
Further, these directors have been restrained from associating themselves with any listed company and any firm which intends to raise money from the public, "till the expiry of four years from the date of completion of refunds to investors," Sebi said in an order.
The company had mobilised Rs 4.5 crore through issuance of non-convertible redeemable secured debentures to nearly 4,800 investors in 2010-11 and 2011-12.

Since the securities were issued to more than 50 people, the offer qualified as a public issue and required compulsory listing on a recognised stock exchange. However, the company did not comply with the provision.
Among other requirements, the firm was required to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
In an order passed today, Sebi said that the firm and its directors -- Pralay Kumar Saw, Sanjoy Kumar Maiti, Sujit Mitra, Partha Pratim Ghosh -- as well as former director Ramprasad Sarkar "shall forthwith refund the money collected by the company" through the issuance of NCDs along with an interest of 15 per cent per annum to investors.

After completing the repayments, they need to file a report of such completion with Sebi within three months.

Further, the regulator has prohibited these entities from the securities markets "till the expiry of four years from the date of completion of refunds to investors".
Also, they have been banned from selling their properties as well as mutual funds, shares and securities held by them in demat and physical form.
"Life Care Debenture Trust and Paromita Mondal are restrained from accessing the securities market and are further restrained from buying, selling or dealing in securities, in any manner whatsoever, for a period of four years," Sebi said.

The directions would come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said.