Sebi to auction Ravi Kiran Realty’s properties next month

By: |
October 15, 2020 5:27 PM

The company had raised funds by issuing redeemable preference shares (RPS) to 1,176 people without complying with the public issue norms.

Inviting bids for the sale of these properties, Sebi said the auction will be conducted through online mode.Besides ensuring orderly trading and settlement, the steps were aimed at effective risk management, price discovery and maintenance of market integrity.

Markets regulator Sebi on Thursday said it will auction properties of Ravi Kiran Realty India Ltd and its promoters next month to recover investors’ money.

The company had raised funds by issuing redeemable preference shares (RPS) to 1,176 people without complying with the public issue norms.

Under the norms, the firm is required to list its securities on the recognised bourse as the shares were issued to more than 50 persons. It was also required to file a prospectus, among other things, which it failed to do.

In a notice, the Securities and Exchange Board of India (Sebi) said it will auction four properties in West Bengal at a reserve price totalling Rs 3.22 crore on November 5.

Inviting bids for the sale of these properties, Sebi said the auction will be conducted through online mode.

The regulator has asked the intending bidders to make their own independent enquiries regarding the measurement, nature, type, classifications, encumbrances, litigations, attachments and liabilities of the properties put on auction.

In March 2016, Sebi had ordered the company to refund investors’ money.

However, it failed to do so and consequently the regulator initiated recovery proceedings against the company and its promoters or directors.

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