SEBI Cracks Down on Cos Raising Public Funds Illegally
Regulator Sebi has begun coming down hard on entities raising public money illegally through issue of 'redeemable preference shares' and similar instruments, as also through sister concerns after being barred from markets.
Action has been initiated in a number of such cases in the past one month, wherein close to Rs 5,000 crore had been raised through issuance of such securities.
These cases are other than those involving illicit 'Collective Investment Schemes'. Sebi has also initiated action in many CIS cases and companies that raised close to Rs 4,000 crore have been asked to wind down their schemes.
In connection with violation of capital markets norms in issuance of RPS and other securities, at least 7 companies, as also their promoters and directors, faced strict action by the Securities and Exchange Board of India in July itself.
These firms were found to have issued debentures and preference shares without complying with the necessary regulatory laws.
Another eight companies faced Sebi crackdown last month for violation of CIS regulations and these include some companies based in Kolkata.
There are some sister concerns of companies that were earlier barred from raising funds as well as from launching investment schemes earlier, shows an analysis of recent orders passed by Sebi.
The regulator in one of its orders has now restrained Saiprasad Corporation from raising funds from the public through its schemes. The regulator had earlier last year barred two group companies, Saiprasad Foods and Saiprasad Properties, from raising funds from the public.
Similarly, Nicer Green Housing Infrastructure Developers was prohibited by Sebi on July 28,2014 from raising further funds while it had issued restraining order against another group company Nicer Green Forest in March last year.
In one of its biggest crackdowns, Sebi has barred Pancard Club India which had raised more than Rs 3,000 crore from nearly 25 lakh investors.
Sebi had also cracked down on firms raising money from the public by issuing securities such as Redeemable Preference Shares and Non-convertible Preference Shares, among others, without following the public issue norms.
During last month, Sebi had prohibited Kolkata-based companies -- PAFL Industries, Sunplant Forgings and Sunplant Constructions -- from raising money through issue of securities, till further directions.
Similar orders were also issued against Mega Mould which had raised Rs 716 crore from investors and Wasankar Wealth Management (Rs 12.89 crore), during the month.
- Tardy Reaction To Molestation Of A Ladkhi Girl Opens Wounds Of Government Apathy To The Region
- No Security Stamps In These 7 Airports Anymore
- Kerala To Launch First Sex Offenders Registry
- Gujarat To Ban Hookah Bars
- Wonderful, Precise And Very Cool: How Do Our Money Up-Chucking Machines Work?
- "I'm Only Passing Through" 10 Leonard Cohen Songs That You Must Listen To
- Blackout For NDTV Stirs The Media
- Daily Curator: The Dominion Of Misunderstood Men Over Headlines
- Daily Curator: Of Holes Being Poked Into The Bhopal Encounter And The Origins Of Chyawanprash
- Watch: Viral Video Has Man Lighting Up A Line Of Crackers Attached To His Mouth
- Government To Launch 'Twitter Seva' To Address Public Grievances
- Gujarat Assembly Passes Bill To Impose Complete Ban On Hookah Bars
- Over 61 % Voting in Phase-IV Of UP Assembly Polls
- Vyapam: No CBI Probe Into Madhya Pradesh Pre-Engineering Test
- No Need To Get Security Stamp On Hand Baggages Anymore In These 7 Airports
- Govt Ropes In Shilpa Shetty As Swachh Bharat Brand Ambassador
- MOST VIEWED
- MOST COMMENTED
- Boys In MP Forced To Dip Hands In Boiling Oil As 'Innocence Test', To Prove They Hadn't Stolen Mobile
- Hafiz Saeed Can Pose A Serious Threat To Nation, Says Pakistan's Defence Minister
- 5 Killed As Aircraft Smashes Into Melbourne Shopping Complex
- Nestle Sales Was Hit By Rs 100 Crore Post Demonetisation, Says Company Chairman