Sebi bars two entities for illegally raising over Rs 14 crore

MUMBAI: Sebi on Thursday barred two companies, Chakra Infrastructure and Krutibibha Corp, as well as their directors from the securities market for illegally raising more than Rs 14 crore from investors.

In two separate orders, the Securities and Exchange Board of India (Sebi) has restrained these entities from the capital market and from soliciting funds from public till further directions.

Chakra Infrastructure, part of Tripura-based Chakra Group, mopped up funds illegally through issuance of Non-Convertible Secured Redeemable Debentures (NCDs).

As per Sebi, the company raised over Rs 10.24 crore by allotting these securities to about 72 entities during 2012-13 period. While Chakra Infrastructure provided information that it mopped up Rs 10 crore, there was an additional amount of over Rs 24 lakh about which complaints were received.

Finding them in violation of regulations, Sebi has barred Chakra Infrastructure as well as its directors from the securities market.

The directors, who have been restrained, are Swapan Majumdar, Pranab Kumar Roy, Subhas Bose, Partha Chakraborti, Soma Chakraborti, Swapan Kumar Sen, Prithwis Kumar Das, Litan Chandra Sen, Biplab Halder, Santosh Kumar and Bijoy Das. These include both present as well as past directors.

Odisha-based Krutibibha Corp was found to have raised money illegally by way of issuing Redeemable Preference Shares and the proceeds were utilised to purchase land and houses in different parts of the state.

By way of such securities, the company raised about Rs 3.84 crore during the financial years 2011-12 and 2012-13.

Apart from the company, its directors — Tapan Kumar Sethi, Ranjit Kumar Sethi, Dayanidhy Behera and Puspa Sethi — have been restrained from the securities market.

"It is also disconcerting that an amount of Rs 1.48 crore, which is approximately 39 per cent of the total amount of Rs 3.84 crore (the amount mobilised under the offer of RPS), has been lent to directors or to companies in which the directors have interest (related parties)," Sebi said in its order against Krutibibha Corp.

In both cases, Sebi has also prohibited the concerned entities from issuing prospectus or any offer document or advertisements to solicit money from the public for issuance of securities.

The ban would be in place till further directions.