Mumbai: Sebi today barred ICore E Services from raising money by issuing securities and also restricted the firm and its directors from the capital market till further directions.
The Securities and Exchange Board of India (Sebi) said that ICore E Services was allegedly “mobilising funds from the public without complying with the applicable law” through issue of debentures and preference shares with promises of huge returns to investors.
The company had allegedly collected funds to the tune of Rs 45.74 crore during 2009-2010.
Sebi observed that issue was made to over 50 persons which under the rules made it a public issue of securities and hence would require a compulsory listing on a recognised stock exchange. The company was also required to file a prospectus which it failed to do.
Consequently, in an order, Sebi has barred the firm “from mobilising funds through issue of equity shares, debentures, preference shares or through issuance of any kind of security to public, and/or invite subscription or deposit, in any manner whatsoever, either directly or indirectly, till further directions”.
Sebi also directed the company and its promoters and directors -- Anukul Maiti, Kanika Maiti, Swapan Kumar Roy, Radhashyam Giri, Tapan Kumar Charterjee, Saral Ranjan Gupta, Amal Bhattacharya, Chandan Dey and Mahadeb—not to issue any offer document or advertisement for soliciting money from the public for the issue of securities, till further orders.
They have been also barred from disposing of any of the properties without prior permission from Sebi. Besides, it cannot divert any funds raised from the public which are kept in bank account(s) and/or in the custody of the company.
The company and its promoters and directors also have to furnish all details sought by Sebi for its probe.
The directions would take effect immediately. Sebi had received complaints and references alleging that various companies including ICore E Services is mobilising funds from public, through issue of securities and misrepresenting that they had permissions and licenses for doing so from regulatory agencies like Sebi, Ministry of Corporate Affairs.
The complaints alleged that the company did not have any profitable business and that the only source for refunding was from fresh money collected.
It was also charged that the firms invested the mobilised money in loss making businesses and wasteful publicity through advertisements.