Sebi bans Swarnabhumi Agritech India, directors from markets

Team Udayavani, Nov 18, 2017, 12:39 PM IST

New Delhi: Regulator Sebi has banned Swarnabhumi Agritech India Ltd and its four directors from the securities market for at least four years and has directed them to refund the money that the company had collected illegally from the public.

Besides, the watchdog has restrained Swarnabhumi Agritech India Debenture Trust and the person representing it, Gautam Bandopadyay, from the capital market for four years.

In an order dated November 16, the Securities and Exchange Board of India (Sebi) said that Swarnabhumi Agritech India Ltd through offer of secured redeemable non-convertible debentures (NCDs) during the financial year 2011-12, had collected at least Rs 24.58 lakh from various allottees.

According to the regulator, the offer of NCDs was a public issue and required compulsory listing of the 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.

Swarnabhumi Agritech India Ltd and the four directors — Biswanath Bhattacharya, Sanjoy Kumar Layek, Prakash Mandal and Hridhi Pratim Neogy — have to refund the money with an annual interest of 15 per cent.

The firm and the directors have been banned from the securities market till completion of four years from the date of complete refunds made to the investors concerned, according to the order.

Besides, the directors have been restrained from associating themselves with any listed public company till the expiry of four years from the date of completion of refunds.