Market regulator Sebi on Friday barred ESBI Infrastructure Company from mobilising fresh funds from investors through issuance of securities till further orders for not complying with public issue norms.
The order follows Sebi receiving a complaint against the Kolkata-based company alleging that it had collected huge amounts of money from the public by way of debentures and preference shares, among others. A probe by the Securities and Exchange Board of India (Sebi) found that the company had allotted 18,67,300 shares to 70 people in 2011-12.Since these shares were issued to more than 50 investors by the company, this qualified to be a public issue, which requires compulsory listing on recognised stock exchanges. Among others, the firm was also required to file their prospectus, which it failed to do.
“There is no other alternative, but to take recourse through an interim action against ESBI Infrastructure and its directors or promoters, for preventing the company from further carrying on with its fund mobilising activity under the offer of equity shares,” Sebi said in an order.
Accordingly, Sebi has restrained the company and its directors Biswajit Paul, Subrata Kumar Paul, Amitava Basu, Sarbaniprasad Bishwas and Biswanath Roy and the promoters Jayanta Basu, Tapas Basu, Jeniya Basu and Saikat Sen from raising funds through the issue of shares or any other form of securities till further directions. Also, the market watchdog has prohibited them from accessing the securities market till further orders. It has asked them not to dispose of any of the properties or alienate or encumber any of the assets owned or acquired by the firm through offer of shares without prior permission from the regulator. The directions shall take “effect immediately and shall be in force until further orders”, Sebi added.
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