Sebi bars Siya-Ram Agro Industries, 2 individuals from securities markets

Sebi bars Siya-Ram Agro Industries, 2 individuals from securities markets

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New Delhi: Sebi has barred Siya-Ram Agro Industries Ltd (SRAIL) and two individuals from securities market for at least three years for illegally raising money through issuance of non-convertible redeemable debentures. The company and the two individuals — Aslam Sayeed and Amritendu Bhattacharya — have been directed to refund money collected through debentures, jointly and severally, with an interest of 15 per cent per annum. Sebi, in an order on Monday, also asked the company and the two individuals to stop mobilising fresh funds from investors through offer and allotment of any securities, either directly or indirectly.

After receiving complaints from various investors, the watchdog found that the company had raised Rs 90.14 lakh from about 130 allottees through issue of debentures during 2006-07 financial year.

However, the funds were raised without complying with various norms.

Sayeed and Bhattacharya were executive director, and chairman cum managing director, respectively, of the company during the period when funds were raised through issuance of debentures.

The regulator, accordingly, prohibited the company and the two individuals from accessing securities market by issue of prospectus/ offer document/ advertisement soliciting money from the public.

They have also been barred “from buying, selling or otherwise dealing in securities in any manner whatsoever, directly or indirectly, from the date of this order, till the expiry of a period of three years from the date of effecting the refund…,” Sebi said.

Credit: Stocks-Markets-Economic Times

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