New Delhi, Oct 27 (PTI) Markets regulator Sebi on Tuesday directed BSP Infrastructure & Construction and its then managing director Pradip Samaddar to refund the money raised from investors within 90 days.

They have been directed to refund the money along with an interest of 15 per cent per annum, according to a Sebi order.

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In addition, they have been barred from the capital markets for a period of four years or till the completion of refund to investors, whichever is earlier.

The company raised over Rs 11 crore by issuing secured redeemable debentures to  9,402 investors as on September 2016.  It claimed to have repaid over Rs 3.2 crore to investors.

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These debentures were issued to more than 48 persons during 2010-11, 2011-12 and 2012-13 without complying with the public issue norms specified under ILDS (Issue and Listing of Debt Securities) Regulations.

Since the debenture were issued by the firm to more than 48 people, it qualified as a public issue that requires compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among other things, which it failed to do.

Accordingly, the regulator has directed the company and Samaddar, who was the managing director of BSP Infrastructure,  to jointly and severally refund the money collected through the allotment of debentures, alongwith an interest of 15 per cent per annum, within a period of 90 days.

In case they fail to comply with the order in three months, Sebi may initiate recovery proceedings.

In addition, as many as 12 individuals have been barred from the capital markets for two years and one individual has been  prohibited for three months.

In a separate order, the regulator barred as many as 14 entities from the capital markets for a period of 3-12 months for indulging in fraudulent trading in the shares of Alps Motor Finance.

Sebi conducted an investigation during June-August 2014 in scrip of Alps Motor Finance to ascertain the possible violation of regulatory norms.

It found that the entities executed trades with the intention to manipulate the market or to defeat its mechanism in a fraudulent manner and thereby violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, Sebi said.

(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)