Reason why Sebi banned these 8 company directors from markets

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Published: February 2, 2018 5:51:06 PM

Market regulator Sebi has banned 8 present and former directors from securities market for a period of 4 years. The reason behind the ban is related to illegal fundraising from investors.The present directors of the firm are Prasanta Chatterjee, Joydeb Biswas, Manas Kumar Dan, Jeba Parween and Renu Singh, while the former ones are Satya Ranjan Chaudhari, Swapna Chaudhuri and Chandrani Dan.

Ajay Bijli, PVR, Sebi, LODRMarket regulator Sebi has banned 8 present and former directors from securities market  for a period of 4 years. (Image: Reuters)

Market regulator Sebi has banned 8 present and former directors from securities market  for a period of 4 years. The reason behind the ban is related to illegal fundraising from investors.The present directors of the firm are Prasanta Chatterjee, Joydeb Biswas, Manas Kumar Dan, Jeba Parween and Renu Singh, while the former ones are Satya Ranjan Chaudhari, Swapna Chaudhuri and Chandrani Dan. According to a Sebi order dated February 1, Swasata Cement Ltd (SCL) had issued and allotted secured redeemable non-convertible debentures (NCDs) to at least 11,013 investors during the financial years 2008-09 and 2009-10 and raised around Rs 6.63 crore.

Finance Minister Arun Jaitley said in his budget speech that market regulator Sebi may consider mandating large corporates to use bond market to finance one-fourth of their funding needs. The move is aimed at deepening the corporate bond market and encourage companies to tap this route for funds. Presenting the Union Budget 2018, Jaitley also said that some PSUs’ assets will be monetised through the infrastructure investment trust (InvIT) route. Sebi has been taking a slew of measures to deepen the bond market.

These include allowing foreign portfolio investors (FPIs) to invest in unlisted corporate debt securities as well as putting in place a new framework for consolidation in debt securities. In its annual report, Sebi had said: “Developing a liquid and vibrant corporate bond market further is an important agenda for enhancing the role of the Indian securities market in channelising long-term finance. Sebi will work with all stakeholders for this.”

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