Shah Grp Builders case: Sebi initiates refund course of; asks buyers to submit financial institution particulars

Markets regulator Sebi on Thursday initiated the refund course of for buyers of Shah Group Builders and requested them to submit financial institution particulars in addition to different paperwork by September 18.

The case pertains to elevating cash by way of the issuance of shares to greater than 1,500 individuals between July-November 2008 with out complying with the regulatory provisions relevant for a public situation.

“For the reason that defaulters (the corporate and its administrators) have already refunded an quantity of Rs 2.97 crore, it has been determined to provoke the method of refund of the remaining quantity to the eligible shareholders,” Sebi stated in a discover.

Additional, greater than 600 eligible shareholders have been requested to submit checking account particulars and different specified paperwork by e mail to the corporate with a duplicate marked to Sebi by September 18 for receipt of refund within the financial institution accounts, it added.

Securities and Change Board of India (Sebi), in October 2016, ordered attachment of belongings of Shah Group Builders and its administrators to get better dues totalling Rs 3.62 crore after they didn’t refund the buyers cash as directed by it.

In the course of the pendency of the proceedings, the defaulters refunded an quantity of Rs 2.97 crore. As well as, Sebi recovered over Rs 6 crore by way of the restoration proceedings initiated by it in 2016.

In July 2015, Sebi had directed the agency and its promoters or administrators to “refund/repay the cash to the tune of Rs 6.16 crore collected pursuant to the allotment of shares by Shah Group Builders throughout July-November 2008 to allottees together with curiosity on the price of 15 per cent each year from the date of receipt of cash from them until the date of such refund inside one 12 months”.