Sebi slaps four-year ban on Life Care Infra Tech

NEW DELHI: Sebi has imposed a four-year ban on Life Care Infra Tech and its six directors from the securities market for illegally raising funds worth nearly Rs 5 crore through issuance of redeemable preference shares.

The company as well as its six directors -- Yogendra Pratap Shahi, Ashok Kumar Singh, Bhardwaj Muni Tripathi, Ramashish Singh, Harendra Kumar Upadhyay and Satyendra Rai -- have been asked to refund the money collected to investors.

The restrain on the directors would "continue to be in force for a further period of four years on completion of the repayments", Sebi said in an order dated September 14.

Life Care had mobilised over Rs 4.89 crore from more than 2,600 investors through issuance of redeemable preference shares.

The company and its directors have been directed to "jointly and severally, refund the money collected through the issuance of redeemable preference shares to the investors including the money collected from investors, till date, pending allotment of RPS, if any, with an interest of 15 per cent per annum compounded at half yearly intervals".

Sebi said that in case the firm and its directors fail to comply with the order within three months, reference would be made to state government and local police to register a civil/ criminal case.

Besides, the Corporate Affairs Ministry would be asked to initiate the process of winding up the company, it added.