Sebi asks Wasankar Wealth to refund money to investors

MUMBAI: Taking strict action against an illegal money pooling activity, market regulator Sebi today directed Wasankar Wealth Management to refund the money it had raised from public, along with interest, through issuance of securities.

The refund has to be made along "with an interest of 15 per cent per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment," Sebi said in the final order.

The Securities and Exchange Board of India (Sebi) found that Wasankar Wealth Management had collected an amount of around Rs 13 crore from 228 investors by issuing Non-convertible Preference Shares during 2009-2010 to 2012-2013.

According to the market regulator, the funds raised by the company through the issue amounted to a public offer as it was made to more than 50 persons and as a result required mandatory listing on the stock exchanges.

Sebi has directed Wasankar Wealth Management and its directors/promoters, to "jointly and severally... refund the money collected by the company through the issuance of f non-convertible preference shares."

Besides, the company and its promoters/directors -- Prashant Jaidev Wasankar, Mithila Vinay Wasankar, Vinay Jaidev Wasankar and Bhagyashree Prashant Wasankar and Abhijeet Jayant Chaudhari have been barred from the securities markets for four years and the ban will continue till the completion of refund to investors.

In case of Wasankar Wealth Management failing to comply with these directives, Sebi would make a reference to state government or local police to register a case against the company for fraud.

Besides, the Corporate Affairs Ministry would initiate the process of winding up of the company.