Regulator Sebi has barred R N Polymer Industries Ltd and its directors from the capital markets for not complying with public issue norms. A probe by Sebi found that the company had allotted redeemable preference shares worth Rs 62 lakh to 1,019 persons in 2008-09 and 2009-10. Besides, it had raised over Rs 4.27 crore by issuing non-convertible debentures (NCDs) to 6,244 persons in 2009-10 and another Rs 1.07 crore by allotting NCDs to 965 persons in 2010-11. Since these securities were issued to more than 50 investors, this qualified as a public issue, which requires compulsory listing on recognised stock exchanges. Among others, the firm was also required to the file a prospectus, which it failed to do.
In an order dated June 19, Sebi Whole Time Member G Mahalingam said: “…the money mobilisation on the part of RNPIL (R N Polymer Industries Ltd) is a continuing affair potentially placing investors at risk. In light of the facts in the instant matter, I find this to be a fit case to pass interim directions against RNPIL and its … directors”. Sebi has restrained the firm and its directors Bandana Basak, Amal Kumar Basak and Chanchal Basak and debenture trustee Pathik Bandhu Lohar from accessing the securities market or buying, selling or otherwise dealing in such market either directly or indirectly.
It has asked the firm and its directors not to dispose of any of their assets nor divert any funds raised from public through the offer and allotment of preference shares and debentures. “Lohar shall not henceforth act as debenture trustee in respect of debentures of RNPIL and shall not take up any new assignment or involvement in any new issue of securities in a similar capacity,” Sebi said.