Regulator Sebi has barred Assda Agro Projects Ltd and its directors from capital markets for not complying with public issue norms. The move follows Sebi receiving complaints against the company in relation to money mobilisation by way of issue of shares. A probe by the Securities and Exchange Board of India (Sebi) found that the company had allotted redeemable preference shares worth about Rs 61.67 lakh to at least 55 persons during 2010-11.
Since these shares 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.
“I find that AAPL (Assda Agro Projects Ltd) is prima facie in breach of the provisions of… the Companies Act, 1956, in connection with the subject offer and allotment of preference shares,” Sebi Whole-Time Member G Mahalingam said in an order. “… the money mobilisation activity on the part of AAPL is 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 AAPL,” he added.
Accordingly, Sebi has restrained the firm and its promoters and directors — Aloke Das, Nabarun Dutta, Sheke Ajger Ali, Debasish Dutta, Sheke Jasmir Hossain, Gouri Dutta, Sekh Jasim Hossain, Santanu Das and S K Mansur Ali — from buying, selling or otherwise dealing in the securities market, either directly or indirectly.
Besides, they have been asked not to dispose of any of their assets or divert any funds raised from public through the offer and allotment of preference shares.