IndiaCSR News Network
MUMBAI: Pulling the plug on illegal mobilization of funds by Great Overseas Commodeal Ltd (GOCL), Sebi has barred the company and its directors from raising money by issuing securities.
The move follows the Securities and Exchange Board of India (Sebi) receiving a complaint from GOCL agents regarding mobilization of funds by the company through the issuance of Redeemable Preference Shares (RPS).
Sebi found that the company had allotted redeemable preference shares worth Rs 2 crore to over 2,277 people during 2011-12 to 2012-13.
The company, through such activity, had allegedly violated various norms, Sebi said.The regulator observed that allotment of shares by GOCL was a public issue, which under the rules require a compulsory listing on a recognized stock exchange.
It was also required to file a prospectus, among others, which it failed to do.In an interim order Sebi said: “GOCL is prima facie engaged in fund mobilising activity from the public, through the offer of RPS” and as a result of such activity it has violated the provisions of the Companies Act.
Accordingly, Sebi said: “GOCL shall forthwith cease to mobilize any fresh funds from investors through the offer of RPS or through issuance of any other securities, to the public or invite subscription, in any manner whatsoever, either directly or indirectly till further directions”
Further, the firm and its three directors — Tirthankar Dasgupta, Pratap Mondal and Gora Chand Pandey — have been barred from issuing any offer document or advertisement for soliciting money from the from the public for the issue of securities.They have been restrained from accessing the securities markets, Sebi said.
The regulator also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from the public.These directions “shall take effect immediately and shall be in force until further orders”
(First appeared in Economic times)
