Sebi bars Angel Rural Development from raising funds

MUMBAI, Nov 23:  Continuing with strict action against entities raising public money illegally, Sebi has restrained Angel Rural Development from mobilising funds from investors and barred it and its directors from accessing the securities market.
The market regulator found that Angel Rural Development Ltd (ARDL) had garnered money from various persons through issuance of non-convertible debentures (NCDs) and had “prima facie” violated various norms.
The Securities and Exchange Board of India observed that ARDL’s issue was made to more than 50 people which, under the rules, made it a public issue of debt securities requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which it failed to do.
“I am of the view that ARDL is prima facie engaged in fund mobilising activity from the public, through the offer of NCDs and as a result of the activity has violated the provisions of the Companies Act,” Sebi Whole Time Member S Raman said in an interim order dated November 21.
Accordingly, Sebi has asked ARDL to “not mobilise funds from investors through the issue of or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly, till further directions”.
Further, the company and its present and former directors — Hasibul Haque, Sunirmal Goswami, Basudev Ghosh, Shekh Nazibulla, Nabina Jahan and Shekh Abdual Robial — are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
The company and its directors, “are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions,” the market regulator said.
Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
While asking Angel Rural Development to provide a full inventory of all its assets and properties, Sebi has also asked the company to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.
Besides, Sebi has prohibited Rojina Begam from “continuing with her present assignment as a debenture trustee in respect of the offer of NCDs of the company and also from taking up any new assignment or involvement in any new issue of debentures, etc in a similar capacity, from the date of this order till further directions”.
Begam had prima facie failed to meet the eligibility criteria specified under the provisions of the Debenture Trustees Regulations, Sebi said.
As per the complaints received by Sebi, Angel Rural Development was placing NCDs of Rs 100 crore and the company issued these securities to at least 96 investors. (PTI)


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