Sebi bars Skymarg Agro Industries India, 5 directors from market

Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do

By: PTI | New Delhi | Published:October 2, 2017 11:08 am
SEBI, Securities and Exchange Board of India , Mutual funds, FICCI, Business news, indian express news Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do. (Representational)

Markets regulator Sebi has barred Skymarg Agro Industries India Ltd (SMAIIL) and its five directors from the securities market and directed them to refund the money collected illegally from the public. According to a Sebi order, the firm’s directors who have been banned from the capital market are Pradip Kumar Das, Dharmnath Rai, Jai Singh, Subhasis Mahato and Sumit Kumar Das. Besides, the firm and directors have been restrained from the securities market till the expiry of four years from the date of completion of refunds along with interest to investors.

SMAIIL had issued and allotted redeemable preference shares (RPS) to at least 65 investors during 2013-14 and mobilised at least Rs 30.67 lakh, the Securities and Exchange Board of India (Sebi) noted in the order dated September 28. Since the shares were issued to more than 50 people, the offer of RPS qualified to be a public issue and required compulsory listing of the securities on a recognised stock exchange. However, SMAIIL did not comply with the provision.

Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do. Sebi has also restrained the directors of the firm from associating themselves with any listed public company and any public entity that intends to raise money from the public, or any intermediary registered with the regulator till the expiry of four years from the date of completion of refunds to investors. The firm and its directors are permitted to sell the assets of the company “for the sole purpose of making the refunds” and deposit the proceeds in an escrow account opened with a nationalised Bank, Sebi said, adding that such proceeds should be utilised for the sole purpose of making a refund to investors.

In a separate order dated September 28, the regulator has directed Arcava Enterprises Ltd (AEL) and its three directors — Aloke Banerjee, Subir Banerjee and Naba Kumar Ganguly — to refund the investors’ money that the company raised illegally through RPS, along with interest. According to the regulator, AEL allotted RPS during 2010–11 and 2011–12 to 183 and 161 persons, respectively, and had raised at least Rs 17,00,500.

“AEL was engaged in fund mobilising activity from the public through the offer of the RPS and contravened the provisions… of the Companies Act,” Sebi said in the order. The firm and directors have also been restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities till the expiry of four years from the date of refund completion.

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