From ET Realty
NEW DELHI: Markets watchdog Sebi today ordered Ramel Real Estate and Infrastructure Ltd to refund investors’ money which it had illegally mobilised by issuing non-convertible debentures (NCDs).
The firm and its directors have been directed to refund the money along with an interest of 15 per cent per annum.
The Securities and Exchange Board of India (Sebi) found that the company had garnered Rs 75 crore by issuing NCDs to 1,045 investors in 2012 without complying with the public issue norms.
Since the firm issued shares to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges.
The company admitted that it did not issue any offer document nor filed the same with the Registrars of Companies (RoC) and had mobilised Rs 75 crore through issue of NCDs.
In an order, Sebi asked the company and its directors/ promoters – Remendra Mohan Sarkar, Rameswar Podder, Sukanta Deband and Partha Das – to jointly refund the money to the investors with an interest of 15 per cent per annum compounded at half-yearly intervals.
The company and its directors have been restrained from the securities market “till the expiry of four years from the date of completion of refunds to investors”.
The order will come into force with immediate effect.
After completing the repayments, the company will have to file a certificate of such completion with Sebi within a period of three months.
In case the firm fails to comply with the directive within 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, Corporate Affairs Ministry would be asked to initiate the process of winding up of the company.
The regulator has also prohibited Ramel Real Estate and Infrastructure Debenture Trust (represented by its Trustee, Sanjoy Deb) “from acting as an intermediary, accessing the securities market and further restrained from buying, selling or dealing in securities, in any manner whatsoever, for a period of four years.”