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Illegal RPS: Sebi orders attachment of properties of En Aromatic & Petro Chemicals

Press Trust of India  |  New Delhi 

Markets regulator Sebi has ordered attachment of properties of En Aromatic & Petro Chemicals to recover Rs 61.49 crore in a case related to illegal fund raising through unregistered redeemable preference shares (RPS).

The attached property consists of "land, factory, all plant and machineries, material, office premises etc... located at Barabanki in Uttar Pradesh", said the (Sebi).

The regulator has already attached the demat and bank accounts, and portfolios of the firm and its directors after directives asking them to refund the investors were not complied with.

In November 2015, the market watchdog had ordered the firm and its directors to refund investors' and barred them from the capital markets for four years.

The company had mobilised Rs 61.49 crore by issuing RPS to more than 89,000 individuals between 2003-04 and 2010-11.

Since the shares were issued by the firm to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges.

Moreover, the company and its directors were also required to file a prospectus, among other things, which they failed to do so.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 06 2018. 17:50 IST
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