Initiating strict action against raising unauthorised raising of money from the public, Sebi has barred two companies -- Mangalam Agro Products and Greater Kolkata Infrastructure Ltd as well as their directors from soliciting funds through issue of securities.
In both cases, the Securities and Exchange Board of India (Sebi) had found that they raised funds from public by issuing Non-Convertible Debentures ostensibly by way of private placement without regulator's approval.
In an order dated May 30, Sebi said -- Mangalam Agro Products Ltd (MAPL)and its directors --Kamolesh Kumar Ghosh, Ujjal Sikder and Tapan Kumar Dey-- are prohibited from issuing prospectus or any offer document for soliciting money from the public for the issue of securities, till further orders.
These entities have been restrained from raising money from the public either directly or indirectly.
Also, Sebi had barred Mangalam Institute of Development and Research and Chandani Mohta from continuing with their present assignment as debenture trustees in respect of the issue of Secured non-convertible debentures of MAPL.
In a separtae order, the watchdog had barred Greater Kolkata Infrastructure Ltd (GKIL) and its directors --Subir Dutta, Nakhat Sing Agarwalla and Bimalendu Rakshit--from soliciting money from the public for the issue of securities till further orders.
Besides, Bimalendu Rakshit, Sujay Roy Choudhury and Sherrie Lal Vasdev are prohibited from continuing with their present assignment as debenture trustees in respect of the issue of secured non-convertible redeemable debentures of GKIL
Both companies should not mobilise funds from investors through the issue of Secured Non-Convertible Redeemable Debentures or equity shares or any other securities, to the public and/or invite subscription, in any manner.
