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Sebi bars Bhabiswajyoti Infrastructure, directors from markets

Press Trust of India  |  New Delhi 

Regulator Wednesday banned Bhabiswajyoti Infrastructure and its eight directors from the securities market for at least four years for raising funds illegally.

The regulator also directed them to refund the money to the investors with an interest of 15 per cent.

The regulator after a probe found that the firm had made an offer of non-convertible debentures in 2012-2013 and 2013-2014 to raise at least Rs 7.55 lakh from at least 55 investors.

The actual number of allottees and the amount mobilised could be higher, the regulator said.

The firm created a charge for an amount of Rs 100 crore in 2012 and appointed as its debenture

As the number of allottees was more than 49, it was deemed to be a public issue and required a compulsory listing on a recognised stock exchange, according to order.

The company was also required to file a prospectus, among others, which it failed to do.

Regarding the directors, said they were liable to be debarred as the issuance of NCDs took place during the period of their directorship.

Sebi barred eight directors -- Prashant Sharma, Soma Sharma, Arindam Mukherjee, Mahindra Nath Chowdhury, Gopal Sharma, Mahesh Shaw, and -- for four years and the ban will continue till the completion of refunds to investors.

Among them, Pradipta Chakraborty, and are present directors of the firm, according to the order.

Besides, the regulator banned (represented by its Sanjoy Chaudhuri) from markets for four years for acting as debenture without certificate of registration from Sebi.

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

First Published: Wed, April 10 2019. 22:20 IST