Sebi directs Suraksha Agrotech to refund investor money

NEW DELHI: Capital markets regulator Sebi has ordered Suraksha Agrotech Industries and its directors to refund the money it had illegally raised from investors by issuing 'redeemable preference shares'.

Besides barring the firm for four years, Securities and Exchange Board of India (Sebi) directed the company to refund the money along with 15 per cent annual interest.

A Sebi probe found that the firm had collected over Rs 11.45 crore by issuing redeemable preference shares (RPS) to 13,612 persons between 2010-2013 without complying with public issue norms.

Since the shares were issued to more than 50 people, the issuance qualified as a public issue that requires compulsory listing on the recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.

In an order dated October 12, Sebi asked the firm and its promoters and directors - Ranjit Daspattanayak, Barun Kumar Nandi, Indranil Das, Arunabha Mukhopadhyay, Akhil Chandra Saha and Subrata Das - to refund the money.

Also, they have been "restrained and prohibited from buying, selling or otherwise dealing in the securities market, from the date of this order till the expiry of four years from the date of completion of refunds to investors".

In case the company fails to comply with these directives, Sebi would make a reference to state government or local police to register a case against the firm for fraud.

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