New Delhi, Sep 28 (PTI) Sebi has barred Rich Infra Developers India and its four directors from the capital markets for at least four years and also directed them to refund money collected illegally from investors. Also Read - CSB Likely to Finalise Allotment of Bank Shares Today, Check Status at Link Intime Website
The directors have also been restrained from holding key managerial position of any listed company for four years, the Securities and Exchange Board of India (Sebi) said in an order dated September 27. Also Read - India Inc raises Rs 4.57 lakh cr via debt private placement in Apr-Jan FY19
The firm was involved in illegal mobilisation of funds from the public through schemes which were deemed to be CIS without obtaining registration from Sebi, thereby contravening CIS and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it said. Also Read - Neogen Chemicals gets Sebi's go ahead for IPO
As per the regulator, Rich Infra had submitted that it had collected Rs 41.82 crore from more than 12,000 investors through its scheme for ‘sale of plots of land and its development’. In financial year 2012-13, the firm received Rs 4.7 crore from investors as advance.
Moreover, Sebi noted “from the balance sheet of Rich Infra that it has mobilized money even after September, 2013.” The regulator said the firm and its directors — Harvinder Pal Singh, Gurpreet Singh Sidhu, Parampreet Singh Sidhu and Baljinder Preet Singh — are jointly and severally liable to wind up their existing CISs and refund the money, along with returns, within nine months from the date of order.
In the event of failure to comply with its directive, Sebi will initiate recovery proceedings against them.
Further, these entities have been restrained from accessing the securities market till the directions for refund to investors are complied with and for a further period of four years from the date of completion of the repayment.
In a separate order dated September 27, Sebi has imposed a penalty of Rs 5 lakh on Albright Electricals for failing to submit the required information sought from the regulator.
This is published unedited from the PTI feed.