Markets regulator Sebi has directed five URO Group firms and their directors to refund the money, which they had illegally collected from the public, within three months. These five firms are — URO Walkers, URO Infra Reality India, URO Infotech, URO Lifecare and URO Hygienic Foods. Besides, the companies and their respective directors have been restrained from the securities market. According to the Securities and Exchange Board of India (Sebi), these companies had collectively garnered about Rs 7.7 crore from over 4,000 investors in 2011-12 through issuance of securities and prima facie violated various provisions of the Companies Act.
These firms issued shares to over 50 persons each, which under the rules made it a public issue of securities. Hence, the companies were required to make a compulsory listing on a recognised stock exchange. Besides, they were required to file a prospectus, among others, which they failed to do. In five similar worded orders, Sebi said that refund has to be made along “with an interest of 15 per cent per annum (the interest being calculated from the date when the repayments became due … till the date of actual payment) within a period of 90 days”.
Besides, the companies and its directors have been barred from the securities markets for four years and the ban will continue till the completion of refund to investors. In case, they failed to comply with the directions of refund, Sebi would initiate recovery proceedings.
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Further, in two separate orders, Sebi has restrained two companies — Jeevan Dhara Geomine Ltd and Basundhara Agro Resources (India) Ltd — from raising funds from the public with immediate effect.
Jeevan Dhara Geomine issued redeemable preference shares (RPS) to atleast 676 persons raising about Rs 1.7 crore between 2009-10 and 2011-12, while Basundhara Agro Resources had mopped-up over Rs 2 crore by iussing RPS to 1,287 persons during 2011-12, 2012-13 and 2013-14. These funds were raised in violation with the public issue norms.
Further, Sebi has asked these firms and their directors not to divert any funds raised from public at large. They have been asked to furnish complete and relevant information sought by the regulator.