New Delhi : Regulator Sebi has barred Abyss Assam Real Estate and its directors from the markets for four years and asked them to refund the money raised from investors without complying with the public issue norms.
The Securities and Exchange Board of India (Sebi) noted that the firm raised over Rs 1.2 crore by issuing reedemable preference shares in 2008-2009 and 2009-2010 to nearly 1,400 investors, the regulator said in an order dated November 14. The shares were issued to over 50 people and accordingly the offer of RPS qualified to be a public issue and required compulsory listing of securities on a recognised stock exchange. However, the firm did not comply with the provision. Among other requirements, the firm was to register a prospectus with the Registrar of Companies (RoC) under the Companies Act, which it failed to do.
“I am of the view that AAREL was engaged in fund mobilising activity from the public, through the offer of RPS and has contravened the provisions of…the Companies Act … provisions pertaining to Sebi…regulations,” Sebi Whole Time Member Madhabi Puri Buch said.
