After completion of refund, these entities would have to file a report of such completion with Sebi, within three months, certified by two independent chartered accountants, Sebi said in orders dated November 27.
Regulator Sebi has directed two companies — Rahul Hi Rise and Shine India Infra Project — and their directors to refund the money that the firms had collected illegally from the public and has also barred them from the markets for at least four years. Rahul Hi Rise mobilised Rs 29.44 crore by issuing non- convertible debentures (NCDs) to at least 100 investors in 2009-10 and 2010-11 while Shine India raised over Rs 13 lakh from the issuance of redeemable preference shares (RPS) to at least 86 people in 2011-12 and 2012-13, Sebi said in two separate orders. The securities were issued to over 50 people each and accordingly, these offers qualified to be public issues and required compulsory listing of securities on a recognised exchange. However, the firms did not comply with the provision. Among other requirements, the firms were to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which they failed to do. Accordingly, Sebi has directed Rahul Hi Rise and its directors — Abhijit Majumdar, Mrinmoy Bose and Dipankar Gupta — Shine India and its directors — Sajahan Midya and Selim Mohammed SK — to refund the money collected by the firms through the issuance of securities along with an annual interest of 15 per cent. In the case of Rahul Hi Rise, Sebi said its order is “subject to the directions passed by the Calcutta High Court in its order dated August 12, 2016”.
After completion of refund, these entities would have to file a report of such completion with Sebi, within three months, certified by two independent chartered accountants, Sebi said in orders dated November 27. In case these entities fail to comply with the orders, Sebi may recover such amounts in accordance with provisions of securities laws. Further, Sebi has barred the firms and their directors from the securities markets till the refund and a further four years from the date of completion of the refund to investors. Also, they have been restrained from associating themselves with any listed public company during the period under review. In October 2015, the markets regulator had prohibited Rahul Hi Rise and Shine India as well as their respective directors from the capital markets “till further directions”.