Taking strict action against illegal money pooling schemes, Sebi has barred two firms -- Vaastav ALR International and Bharat KrishiSamridhi Industries -- and their directors from securities markets.
Sebi observed that these firms made issues of securities through non-convertible debentures and redeemable preference shares to over 50 persons each, which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange.
Both the companies were also required to file a prospectus, among others, which they failed to do.
Accordingly, Sebi, in two separate orders, has barred Vaastav and its directors from the securities market till further directions, while Bharat KrishiSamridhi and its directors have been prohibited from the markets for four years.
Vaastav has been restrained from mobilising any fresh funds from investors through the issuance of securities to the public till further directions.
Separately, the markets watchdog has asked Bharat KrishiSamridhi and its directors to refund the money collected from investors along with 15 per cent annual interest.
Further, Sebi has barred the company and its directors from the securities markets for four years and said that the ban will continue till completion of refunds to investors.
In case Bharat KrishiSamridhi fails to comply with Sebi's order, the regulator would make a reference to the state government/local police to register a civil/criminal case against the company and its directors for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.
It would also make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the firm.
