New Delhi: Market regulator Sebi has barred Skymarg Agro Industries (SMAIIL) from the securities market for allegedly violating public issue norms.
A Securities and Exchange Board of India (Sebi) probe found that the company issued redeemable preference shares to 65 persons without complying with the 'public issue' norms.
As these shares were issued to more than 50 people, the issuance qualified to be a public issue that requires compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which the company failed to do.
The probe also found that SMAIIL had collected application money for further issue of preference shares even after the allotment to 65 persons.
The company and its promoters and directors have been restrained from the securities market, Sebi said. The regulator has also prohibited them from disposing assets amassed through the offer of redeemable preference shares, without prior permission from Sebi.
Those barred from the markets include Pradip Kumar Das, Dharmnath Rai, Jai Singh, Subhasis Mahato and Sumit Kumar Das.
Sebi has also asked SMAIIL to reply within 21 days to avail an opportunity of personal hearing.
"I am of the view that SMAIIL is prima facie engaged in fund mobilising activity from the public, through the Offer of Redeemable Preference Shares and as a result of the aforesaid activity has violated ... provisions of the Companies Act," Sebi's Whole Time Member S Raman said in his order.
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