SEBI orders Goldmine Agro, directors to refund investors
Market regulator SEBI has directed Goldmine Agro and its directors to refund investors money that it had raised illegally. SEBI also imposed a ban on the firm and its directors from accessing capital markets for four years after the refund. SEBI observed that securities issued by the firm required compulsory listing on recognised stock exchanges, which it failed to do.
New Delhi, Jul 13 (PTI) Markets regulator Sebi has asked Goldmine Agro Ltd (GAL) and its directors to refund investors money that the Kolkata-based company had raised illegally by issuing securities. Besides, Sebi imposed a ban on the firm and its directors from accessing the capital markets for four years from the completion of refund. Goldmine Agro mobilised funds illegally through issuance of non-convertible redeemable debentures (NCDs). According to Sebi, Goldmine Agro had raked in Rs 35.62 crore by issuing NCDs to investors during 2009-10 and 2011-12. However, the company had not given details about the number of allottees. The company, through such activity, violated various norms, Sebi noted. The regulator observed that allotment of NCDs by the firm was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do. 