Capital market regulator Sebi today restricted three companies -- Amrit Projects (N.E.) Ltd, Magnox Infraprojects Ltd and Pinnacle Ventures India Ltd -- from raising funds via issuance of securities.
The regulator also barred the three companies and their directors from accessing stock markets.
The Securities and Exchange Board of India (Sebi) found that the firms had raised money through issue of preference shares' and as a result of such activities had violated various norms.
While Magnox Infraprojects and Pinnacle Ventures are Kolkata-based firms, Amrit Projects is based in Guwahati, Assam.
In three separate orders today, Sebi directed the firms not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.
The companies and their respective directors have also been "prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders".
Besides, the companies and its directors have also been restrained from accessing the securities market, Sebi said in the orders.
They have also been asked have been asked not to divert any funds raised from public at large and provide full inventory of all their assets and properties.
Sebi observed that the companies had issued shares to over 50 persons which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange, among other requirements.
In the order against Amrit Projects, Sebi initial probe has found that the company had mobilised funds amounting to about Rs 10.38 crore during the financial Years 2009-10, 2010-11, 2011-12 and 2012-13.
Similarly, Magnox Infraprojects had raised Rs 2.31 crore while Pinnacle Ventures had mobilises an amount of Rs 3.85 crore from investors.
