August 9, 2020

SEBI ban: Sebi imposes 2-year ban on two people

NEW DELHI: Sebi on Friday barred two people from the securities market for 2 years for non-compliance with the regulator’s earlier order associated to illegally elevating funds from traders.

The ban has been imposed on Pradeep Kumar Behera and Ravendra Kumar.

In April 2016, the watchdog handed the ultimate order in opposition to Mass Infra Realty Ltd (MIRL) and its administrators for violation of public subject norms. The corporate had raised almost Rs 38 crore by issuing Non-Convertible Redeemable Debentures (NCDs) to in 2011-12, 2012-13 and 2013-14, with out complying with norms.

The corporate had violated Sebi’s ILDS (Situation and Itemizing of Debt Securities) Laws.

Amongst its instructions within the ultimate order, Sebi had requested MIRL and its administrators to collectively and severally refund the cash collected by the use of subject of the debentures.

Nonetheless, Sebi discovered that MIRL has neither accomplished the refund to traders nor filed any report from the chartered accountant, as directed earlier.

In its order on Friday, Sebi mentioned it’s understood that in view of the non-compliance with the course to make refund given within the ultimate order, restoration proceedings in opposition to MIRL and its then administrators are underway.

In opposition to this backdrop, the watchdog has banned Behra and Kumar from the securities marketplace for two years.

In keeping with Sebi, each the people had been administrators of MIRL as on passing of the ultimate order on April 25, 2016. “Subsequently, noticee no. 2 (Kumar) resigned on December 14, 2016”.

The 2 people have been prohibited from accessing the securities market by subject of prospectus/ supply doc/ commercial or in any other case in any method. Additional, they’ve been barred from shopping for, promoting or in any other case dealing in securities in any method in anyway, instantly or not directly, for 2 years, the regulator mentioned.