Sebi has directed Jakraya Sugar (JSL) and its directors to refund the money that was collected from investors without complying with the regulatory norms.
In addition, these entities have been restrained from buying, selling, or otherwise dealing in the securities market “till the expiry of a period of three years from the date of effecting the refund”.
“JSL has raised Rs 20.94 crore through the issue of NCRPS to 849 investors in FY2008-09, 476 investors in FY2009-10, 2,786 investors in FY2012-13, and 601 investors in FY2013-14, in violation of public issue norms as stipulated under Companies Act, 1956 and DIP (Disclosure and Investor Protection) Guidelines,” Sebi’s whole-time member Ashwani Bhatia said in the order.
JSL claimed that as it did not make any public issue of NCRPS, it was not required to file a prospectus.
However, the issue of NCRPS in FY 2008–09, 2009–10, 2012-13, and 2013-14 by JSL is prima facie deemed to be a public issue under Sebi rules. Therefore, JSL should have registered a prospectus with the RoC, Sebi said.
JSL’s directors are Birappa Bhagwan Jadhav, Rahul Jadhav Birappa, Sachin Birappa Jadhav, Umadevi Birappa Jadhav, Manisha Sachin Jadhav, Lata Satyawan Bamane, Shubhangi Satyawan, Shridhar Vinayakrao Mane, Priyanka Rahul Jadhav, Paresh Suhas Dange, Bajarang Shivaji Jadhav and Bandopant Madhukar Sathe.
The money collected from investors have to be refunded with an annual interest of 15 per cent.
