New Delhi, Nov 15 (PTI) Regulator Sebi has barred Abyss Assam Real Estate and its directors from the markets for four years and asked them to refund the money raised from investors without complying with the public issue norms.
The Securities and Exchange Board of India (Sebi) noted that the firm raised over Rs 1.2 crore by issuing reedemable preference shares in 2008-2009 and 2009-2010 to nearly 1,400 investors, the regulator said in an order dated November 14.
The shares were issued to over 50 people and accordingly the offer of RPS qualified to be a public issue and required compulsory listing of securities on a recognised stock exchange. However, the firm did not comply with the provision.
Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
“I am of the view that AAREL was engaged in fund mobilising activity from the public, through the offer of RPS and has contravened the provisions of…the Companies Act …
provisions pertaining to Sebi…regulations,” Sebi Whole Time Member Madhabi Puri Buch said.
Accordingly, Sebi has asked the company and its directors — Mohd. Mazibar Rahman and Dhanjit Gayary –; and its former director Tilak Sarma to refund the money collected by the firm, during their respective period of directorship through the issuance of RPS, with an annual interest of 15 per cent.
After completion of refund, they have been directed to file a report of such completion with Sebi, within a period of three months, certified by two independent chartered accountants.
In case these entities fail to comply with the order, Sebi may recover such amounts in accordance with provisions of securities laws.
Further, Sebi has prohibited Rahman, Sarma and Gayary from the securities markets till the refund and a further period of four years from the date of completion of the refund to investors. Also, they have been restrained from associating themselves with any listed public company during the period under review.
Moreover, Sebi has barred its two other directors — Aynal Hoque Talukdar, Abdul Maleque Miah — from the markets for only four year period as well as from holding any position in a listed company for the period. These two directors joined in 2011 after allotment of shares.
This is published unedited from the PTI feed.