Markets regulator Sebi has barred Aspen Nirman India Ltd (ANIL) and its seven directors from securities market for at least four years and directed them to refund the money that the company collected illegally from the public.
The firm's seven directors who have been banned from the capital market are Abhijit Dasgupta, Bhaskar Saha, Ashim Maitra, Ujjal Kumar Roy, Avijit Kumar Ganguly, Debopam Sur and Goutam Sarkar, according to a Sebi order dated October 10.
Besides, the directors have been restrained from associating themselves with any listed public company from the date of the order till the expiry of four years from the date of completion of refunds to investors.
According to the regulator, ANIL had issued and allotted non-convertible debentures (NCDs) to at least 167 investors during the financial years 2011-2012, 2012-2013 and 2013-2014 and raised an amount of at least Rs 33.59 lakh.
Since the securities were issued to more than 50 people, the offer of NCDs qualified to be a public issue and required compulsory their listing on a recognised stock exchange. However, ANIL 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.
According to the Securities and Exchange Board of India (Sebi), the firm and the directors will have to refund the money raised through issuance of NCDs, with an annual interest of 15 per cent till the date of actual payment.
The regulator has permitted ANIL and the directors to sell the assets of the company for the sole purpose of making the refunds and deposit the proceeds in an escrow account with a nationalised bank.
In an interim order passed in 2015, Sebi had restrained ANIL and the directors from accessing the securities market and directed the firm not to mobilise fresh funds from the investors "till further directions".
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)