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Rs 2.5 crore illegal bond case: SEBI bans Amrit Projects, directors from securities market

Rs 2.5 crore illegal bond case

Regulator Sebi today barred Amrit Projects and its directors from the securities market for illegally raising funds from public. The directions will remain in force until further orders, the Securities and Exchange Board of India (Sebi) noted. According to the regulator, Amrit Projects Ltd (APL) had garnered Rs 2.5 crore by issuing two types of […]

Regulator Sebi today barred Amrit Projects and its directors from the securities market for illegally raising funds from public. The directions will remain in force until further orders, the Securities and Exchange Board of India (Sebi) noted. According to the regulator, Amrit Projects Ltd (APL) had garnered Rs 2.5 crore by issuing two types of deep discount bonds – infra bond and power bond – from nearly 2,200 investors between 2007-08 and 2012-13.

Since the issue was made to over 50 persons which under the rules made it a public issue of debt securities, it would require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do. “As the offer and allotment of deep discount bonds by APL is prima facie a public issue in accordance with the provisions of the Companies Act, the same will attract the requirement for such shares/debentures to be dealt on a recognised stock exchange in terms of the ….Companies Act,” Sebi said in an interim order.

Accordingly, the regulator said the company and its directors or promoters “shall not access the securities market or buy, sell or otherwise deal in the securities market, either directly or indirectly, or associate themselves with any listed company or company intending to raise money from the public”. These directors or promoters are — Kali Kishore Bagchi; Kailash Chand Dujari; Nishant Prakash; Sudha Dujari; Mahammad Azam Khan; Bhasker Shukla; Sasanka Roy Sarkar; Jamil Ahmed Farooqui; Syed Kazim Raza; Debdas Chatterjee; Barun Kumar De; Bipradas Majumdar and Ranjan Kumar Chowdhury.

Further, they have been directed to cooperate with Sebi and furnish all information in connection with the offer and allotment of deep discount bonds sought by it. The regulator also asked why suitable directions including making refund should not be issued against them.

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