You are here: Home » Markets » News
Business Standard

Sebi bans Asoka Life Science, directors from securities market for 4 years

Sebi directed them to refund the money the company had collected without complying with public issue norms.

Sebi  |  Securities And Exchange Board Of India  |  Stock Market

Press Trust of India  |  New Delhi 

Sebi Photo: Reuters

on Tuesday banned Kolkata-based Asoka Life Science and its four former and present directors from the securities market for at least four years and directed them to refund the money the company had collected without complying with public issue norms.

According to a order, Asoka had offered redeemable preference shares to 6,842 investors during the financial years 2007-08 to 2011-12 and raised approximately Rs 62.2 million.

The company had also raised Rs 29.5 million from 960 investors as on September 30, 2011 through offer of secured redeemable (NCDs).

Since the securities were issued to more than 49 people, both the offers qualified to be public issues and required their compulsory listing on recognised stock exchanges. However, Asoka did not comply with the provision.

Asoka and its directors have to jointly and severally refund the money collected by the firm with an annual interest of 15 per cent within a period of 90 days.

Till the refund is made, the firm and the directors have been restrained from the capital Following the completion of refund, they would be banned from the for a period of four years and prohibited from buying, selling or otherwise dealing in securities.

The former and current directors of the firm include Sourav Roy, Simanta Roy, Priyanka Roy and Antara Mukherjee.

Asoka had appointed Dilip Mukherjee and Soumen Chatterjee as debenture trustees for the issue of the NCDs. However, the two were not registered with the (Sebi) in terms of the Debenture Trustee Regulations.

For acting as debenture trustees without holding a valid certificate of registration, has banned Dilip Mukherjee and Soumen Chatterjee from the securities market for one year.

Through an interim order passed in March 2015, Sebi had banned Asoka and its directors from accessing the capital and directed the firm to not mobilise funds from investors, till further directions.

Dilip Mukherjee and Soumen Chatterjee were also prohibited from continuing as debenture trustees in respect of the offer of NCDs of Asoka and also from taking up any new assignment through the earlier ruling.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, June 19 2018. 20:48 IST