Sebi directs two companies to refund investors’ money

Apart from the company, Sebi has directed its six directors to refund the investors' money at the interest rate of 15 per cent per annum.

By: PTI | New Delhi | Published:November 1, 2016 10:16 pm
Sebi, Equinox Infratech, Megasys Healthcare, Dinesh Ch Ghosh, news, latest news, India news, national news In the latest order, Sebi has asked the company and five directors to refund the money to investors at an annual interest rate of 15 per cent. (File Photo)

Sebi on Tuesday directed Equinox Infratech and Megasys Healthcare as well as their respective directors to refund more than Rs 12 crore raised illegally from investors. Both companies and their directors were barred from the securities market till further directions by way of separate interim orders earlier this year.

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Equinox Infratech had raised little over Rs 12 crore through issuance of non-convertible redeemable secured debentures that was in violation of regulations. In the latest order, Sebi has asked the company and five directors to refund the money to investors at an annual interest rate of 15 per cent.

These entities would be barred from the securities market for four years or till the date of refund of money to the allottees, whichever is later, the regulator said. A similar order has been passed in the matter of Megasys Healthcare, which had illegally mopped up more than Rs 52 lakh from investors by issuing secured redeemable non-convertible debentures.

Apart from the company, Sebi has directed its six directors to refund the investors’ money at the interest rate of 15 per cent per annum. Further, they have been barred from the securities market for four years or till the refund of money, whichever is later.

In both cases, Sebi has banned the respective debenture trust and related individuals from the securities market for four years. The barred entities are Equinox Debenture Trust, Arpita Chakraborty, Megasys Healthcare Debenture Trust and Dinesh Ch Ghosh.