Markets

Sebi bars Siyaram Development, 8 directors from market

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Markets regulator Sebi has barred Bengaluru-based Siyaram Development and Construction and its eight directors for at least four years from the securities market for illegally raising funds.

Besides, the regulator directed the entities to refund the money collected by the company along with 15 per cent interest.

Based on a complaint by an investor regarding non-payment of maturity amount of his investment, Sebi conducted a probe to ascertain whether the firm had made any public issue without complying with the relevant provisions of Sebi and the Companies Act.

During the probe, the regulator found that the firm had allotted secured redeemable debentures (SRDs) between financial years 2010-11 and 2012-13 and raised at least Rs 4.22 crore from more than 49 allottees.

The number of allottees and the amount of money raised during the said period could be more, Sebi said.

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Moreover, the firm created a charge for an amount of Rs 70 crore and appointed Kalpana Guha as its debenture trustee.

As the number of allottees was more than 49, it was deemed to be a public issue and required a compulsory listing on a recognised stock exchange.

Further, the company was required to file a prospectus, among others, which it failed to do, Sebi said in an order on Tuesday.

Sebi said a director who is part of a company's board shall be responsible and liable for all acts carried out by a company.

Besides the company, the regulator barred directors Prasanta Bera, Biraja Bera, Paromita Dey, Biswajit Roy, Arun Sardar, Aravinda Read More – Source
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