IndiaCSR News Network
NEW DELHI: SEBI has barred – Greenbang Agro and Eris Energy – and their directors from mobilizing money from investors through the issuance of securities for violating public issue norms.
The move follows Securities and Exchange Board of India (Sebi) receiving complaints regarding illegal mobilization of funds by the companies through issuance of Non-Convertible Secured Redeemable Debentures (NCDs). Sebi found that Greenbang Agro raised Rs 37 lakh from at least 212 people through issuance of NCDs between 2011-12 and 2013-14, while Eris Energy garnered over Rs 2 crore from 205 investors through such issue during the same period.
Sebi found that Greenbang Agro raised Rs 37 lakh from at least 212 people through issuance of NCDs between 2011-12 and 2013-14, while Eris Energy garnered over Rs 2 crore from 205 investors through such issue during the same period. The companies, through such activities, had allegedly violated various norms, Sebi said.
The regulator observed that allotment of NCDs by the firms were 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 they failed to do.
These companies are “engaged in fund mobilizing activity from the public, through the offer of NCDs, and as a result of such activity has violated the provisions…of the Companies Act,” Sebi said in two separate interim orders.
Accordingly, Sebi has restrained the companies and its directors from mobilizing any fresh “funds from investors through the offer of NCDs or through the issuance of equity shares or any other securities to the public, and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions”.
Further, the firms and their directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.They have been restrained from accessing the securities markets, Sebi said.
The capital market watchdog 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.
Also, Sebi has prohibited debenture trustees of these firms from continuing with their assignment in respect of NCDs issue of these companies. It also barred them from taking up any new assignment in a similar capacity till further directions.
This order “shall come into force with immediate effect and shall continue to be in force till further directions”.
(IndiaCSR is renowned and No.1 news portal in the domain of CSR, which is live since 2009. www.indiacsr.in is for you and your organization. IndiaCSR believes in uninterrupted generation and flow of information. We also believe in values and extending value based descriptions. IndiaCSR is mirroring what is happening around in the contemporary environment. We request you to support the initiative and promote it within your network. We welcome reactions to the stories, comments on issues that interest you, feedback & comments from your side to make it more purposeful and resourceful. Please send us your organization’s news, press releases, articles and contributions to editor@indiacsrnetwork.com. You can find updates at Facebook IndiaCSR News )
