SEBI directs Suraksha Agrotech Industries to refund money collected from investors

Moneylife Digital Team 21 October 2015

The company was engaged in fund mobilising activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956, according to the SEBI Order

Market regulator SEBI (Securities Exchange Board of India) directed Suraksha Agrotech Industries to refund money collected from investors through the issue of RPS (Redeemable Preference Shares). The refund direction is commonly issued to Suraksha Agrotech and its directors Ranjit Daspattanayak, Barun Kumar Nandi, Indranil Das, Arunabha Mukhopadhyay, Akhil Chandra Saha and Subrata Das. The SEBI Order to refund also includes an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment.

The company and its directors are prohibited from accessing the securities market/ capital market uptil a period of four years after the completion of the refund process, according to the SEBI Order.

The company was engaged in fund mobilizing activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956, according to the SEBI Order.

The SEBI Order notes with regret that the interim order was ignored by the company. The interim order had directed the company and its directors to provide relevant and necessary information, as sought in SEBI letters dated July 26, 2013 and February 05, 2014. Though the Company, in its letter dated August 14, 2013, sought extension of twenty days to furnish the information/ documents, it failed to do so. Thereafter, a reminder was sent in a SEBI letter dated February 05, 2014 to the registered office as well as the head office of the Company. However, these letters were returned undelivered. As on date, the SEBI Order points out that the company has failed to submit information/documents, as has been directed in the interim order.

Hence, the final SEBI Order directing the company to close the mobilising activity and make the refund for money already collected.

To make sure there is sufficient investor awareness on the refund order from SEBI, the SEBI Order specifies, “The company and its promoters and directors shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily (in Bengali) with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect.”

The SEBI Order concludes by saying, “This Order is without prejudice to any action, including adjudication and prosecution proceedings that might be taken by SEBI in respect of the above violations committed by the company, its promoters, directors and other key persons.”

Comments

User

Vaibhav Dhoka

1 decade ago

SEBI The watchdog should give data about orders passed and their execution and amount of investors money paid back.SEBI just boast itself by passing such orders as shedding crocodile tears that it stands for investors safety.Pity Indian investors.