Markets regulator Sebi today ordered Sankalp Projects and its seven directors to refund investors' money which they illegally mobilised through issuance of securities.
Besides barring the entities from the capital market for four years, the regulator has directed them to refund the money alongwith an interest of 15 per cent per annum.
The company had garnered funds illegally through issuance of Non-Convertible Redeemable Debentures (NCDs).
A Securities and Exchange Board of India (Sebi) probe found that the firm had mobilised at least Rs 2.49 crore during
2010-14 by issuing NCDs to a large number of investors.
The securities were issued by the firm to more than 49 people which, under the norms, made it a public issue that requires compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among other things, which it failed to do.
"I am inclined to accept that the company has made offer and issued NCDs to a large number of persons thereby mobilising at least Rs 2.49 crore," Sebi's Whole Time member Prashant Saran said.
Further, it was found that the debenture trustee of the company - Sankalp Debenture Trust (represented by Moumita Bhowmick) acted without obtaining registration from Sebi.
The entities have been restrained and prohibited from buying, selling or otherwise dealing in the securities markets for four years and the ban will continue till the completion of refunds to investors.
In case the company fails to comply with the order in three months, Sebi would make a reference to the state government or local police to register a case against them for fraud, cheating and misappropriation of public funds.
Besides, it would make a reference to the Ministry of Corporate Affairs to initiate appropriate action as deemed fit.
Further, Sankalp Debenture Trust has been prohibited from acting as an intermediary in the securities market till it obtains registration from Sebi. It has also been restrained from accessing the securities market for four years.
The directions would come into force with immediate effect.
