Latest News | Sebi Bars Amrit Projects, 5 Individuals from Securities Market

New Delhi, Nov 24 (PTI) Sebi on Tuesday barred Amrit Projects Ltd (APL) and five individuals from the securities market for four years in a matter related to illegally raising funds from the public.

The individuals are Kailash Chand Dujari, Kali Kishore Bagchi, Nishant Prakash, Debdas Chatterjee and Sudha Dujari.

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In June 2018, the watchdog had passed an interim order barring APL and its directors/ promoters from the securities market for violation of public issue norms.

APL had raised Rs 2.57 crore from nearly 2,200 investors between 2007-08 and 2012-13 by issuing two types of deep discount bonds -- infra bonds and power bonds, Sebi said.

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The regulator found that APL had not applied to a recognised stock exchange seeking permission to list its deep discount bonds.

In a 27-page order, the regulator said that APL "shall cease to mobilise fresh funds from investors through the offer and allotment of any securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly."

APL and its Managing Director Kailash Chand Dujari have been directed to jointly and severally refund the money collected by the company through the offer and allotment of deep discount bonds along with 15 per cent annual interest within 180 days from Tuesday's order, as per Sebi.

Sebi has barred the company and Kailash Chand Dujari from accessing the securities market directly or indirectly for four years from the date of effecting the refund.

Kailash Chand Dujari has also been restrained from associating himself with any listed public company or any public company which intends to raise money from the public, or any intermediary registered with Sebi for four years, as per the order.

In the case of Kali Kishore Bagchi, Nishant Prakash, Debdas Chatterjee and Sudha Dujari, Sebi said they have also been banned from accessing the securities market for four years.

The period of prohibition as already undergone since the date of the interim order shall be set-off against the prohibition of four years, Sebi noted.

Sebi, in a separate order on Tuesday, imposed a fine of Rs 5 lakh on R K Stockholding for misusing clients' securities, among other violations. The firm is a stock broker.

In another order passed on Tuesday, the regulator imposed a fine of Rs 4 lakh on Sunilkumar Bhikhabhai Nayi for violating takeover norms while dealing in the shares of Alora Trading Company Ltd (ATL).

It was found that the individual had failed to make disclosures regarding the purchase and sale of shares that resulted in the increase of its shareholding by more than 5 per cent on two different occasions.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)