SEBI Bans Jeevan Suraksha Real Estate and Directors

Market regulator Sebi has imposed a ban on Jeevan Suraksha Real Estate and its directors for violation of market norms in raising of funds from public through equity shares.

According to media reports, the company, in 2006-07, had allotted equity shares of face value Rs 100 per share to 65 persons to raise Rs 10 lakh.

The regulator observed that allotment of the shares 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. Jeevan Suraksha Real Estate failed to fulfil these obligations.

Accordingly, the regulator restrained the company and its directors -- Chandan Das, Ashok Chakraborty, Uttam Acharjee, Pankaj Biswas, Champa Biswas, Sangita Das, Arju Acharjee and Dipamoni Acharjee from the securities market till further directions.

Further, the company and its directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities, a TOI report said.

The capital market watchdog has also asked the entities not to dispose any of the properties or assets acquired by that company without prior permission from the regulator as well as not to divert the funds raised from the public.

Meanwhile, in a separate case of alleged unauthorised fund mobilising activity from the public through Redeemable Preference Shares, a ban has already been imposed on the entities by the regulator.

In a separate order in the matter of Rising Agrotech Ltd, Sebi said one Lina Kayal, a director in the company, is also responsible for making refunds to the public.

In August last year, Sebi had asked the company and its directors to refund the money it had illegally raised from investors. The name of Lina Kayal as a director of the company came to the regulator's notice later.

Accordingly the regulator has said "Lina Kayal shall, jointly and severally along with the company and others as ordered vide the SEBI Order dated August 3, 2015, forthwith refund the money collected by the Company through the offer and issuance of Preference Shares" which violated market norms.

Kayal has also been barred from the capital markets till the expiry of four years from the date of completion of refunds to the investors, the report further stated.