Sebi imposes ban on individuals, entities for illegally raising funds

By: |
January 1, 2021 4:54 PM

Sebi has banned two entities and eight individuals from the securities market for illegally raising money from investors through the issuance of secured redeemable debentures.

Securities and Exchange Board of India (Sebi) also directed RBFFPL to cease mobilising fresh funds from investors through the offer and allotment of any securities to the public.

Sebi has banned two entities and eight individuals from the securities market for illegally raising money from investors through the issuance of secured redeemable debentures. In an interim order passed on Thursday, the regulator barred Bharoti Fish and Food Processing Ltd, its directors, promoters and debenture trustee from securities market until further orders.

Following several complaints, Sebi conducted an examination into the affairs of Rakhal Bharoti Fish and Food Processing Ltd (RBFFPL) to ascertain if the firm has issued the Secured Redeemable Debentures (SRDs) to the public in violation of norms. It was found that the company had garnered Rs 11.4 lakh by issuing SRDs to 83 persons during 2012-13 and 2013-14.

As per the regulator, the company had made public issues of the SDRs without following norms. Securities and Exchange Board of India (Sebi) also directed RBFFPL to cease mobilising fresh funds from investors through the offer and allotment of any securities to the public.

Further, the company and its directors have been asked not to dispose of, alienate or encumber any of its/ their assets or divert any funds raised from public through the offer and allotment of SRDs. Sebi has prohibited Gautam Banopadhyay, the trustee of Rakhal Bharoti Fish and Food Processing Debenture Trust, from continuing with its assignment, and also barred it from taking any new assignment or involve himself in any new issue of securities in a similar capacity.

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