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Sebi bans Media 9th Creations, directors from markets

Press Trust of India  |  New Delhi 

Markets regulator has barred Media 9th Creations and its two directors from the securities market for at least four years and directed them to refund the the firm had collected illegally from the investors.

As per a order dated January 10, Media 9th Creations Ltd (MCL) had issued and allotted redeemable preference (RPS) to 259 investors as on May 2, 2008 and raised an amount of Rs 90 lakh.

The were issued to over 50 people and accordingly the offer of RPS qualified to be a public issue and required compulsory listing of securities on a recognised stock exchange. However, MCL did not comply with the provision.

Among other requirements, the firm was to register a prospectus with the of Companies (RoC) under the Companies Act, which it failed to do.

According to the order, MCL and its two directors -- Pushpal and Shuvra Roychoudhury -- have to the refund the investors along with an annual interest of 15 per cent.

has also restrained the two directors from associating themselves with any listed public company till the expiry of four years from the date of completion of refunds to investors.

In a separate order dated January 10, the regulator also prohibited from buying, selling or dealing in the securities market for at least four years for violating IA (Investment Advisers) Regulations.

Ahire had allowed to continue providing using his Sebi registration number and through his sole proprietorship concern OSAR Capital.

However, Sebi had restrained from continuing its through an interim order in June 2015.

"The noticee (Ahire) has failed to exercise due skill, care and diligence and has acted dishonestly, allowing the integrity of the securities market to be compromised by allowing a restrained entity to continue providing investment services," said the (Sebi).

"The noticee is in violation of... the IA Regulations," it added.

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

First Published: Thu, January 11 2018. 22:40 IST