A SEBI probe found that the company had mobilised Rs 1.17 crore by issuing Redeemable Preference Shares to at least 116 persons and mopped up a little over Rs 1 crore.
Cracking the whip on illegal funds mobilisation, markets regulator Sebi has barred Angel Agritech from raising fresh money from investors. Besides, Angel Agritech and its directors have been prohibited from buying, selling or otherwise dealing in the securities market. The move comes after Sebi received complaints stating that Angel Agritech was collecting money illegally and the firm was not refunding the money collected.
A SEBI probe found that the company had mobilised Rs 1.17 crore by issuing Redeemable Preference Shares (RPS) to at least 116 persons and mopped up a little over Rs 1 crore by allotting non-convertible debentures (NCDs) to atleast 756 persons. These funds were garnered between 2009 and 2014.
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Since the securities were issued by the firm to over 50 people, it qualified as a public issue that requires compulsory listing on a recognised stock exchange under the Companies Act. However, the company has not complied with the norms.
“Angel Agritech shall cease to mobilise fresh funds from investors through the offer and allotment of any securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly,” Sebi said in an interim order.
The company and its directors “shall not buy, sell or otherwise deal in the securities market, either directly or indirectly, or associate themselves with any listed company or company intending to raise money from the public”.
Also, the company and its directors have been prohibited from disposing of any of the properties or shares and barred from diverting any funds raised from public.
“Dristi Social Welfare Trust and its trustee Nabina Jahan shall not henceforth act as debenture trustee in respect of debentures of AAL and shall not take up any new assignment or involvement in any new issue of securities in a similar capacity,” Sebi said. These directions would take effect immediately and would be in force until further orders, it said.