Sebi bans former Bishal Distillers director of mkt securities for 4 years
New Delhi, October 18 () Acting against the illegal mobilization of funds, regulator Sebi banned the former director of Bishal Distillers from the stock market for four years.
The Securities and Exchange Board of India (Sebi), in an investigation, discovered that the company had mobilized Rs 4 million rupees by issuing salvageable preferred shares (RPS) to 238 people without complying with public emission regulations.
The funds were mobilized in 2011-12, and former director Prabir Chowdhury held the position from 2012 to 2013, said the order approved by the regulator.
Sebi said that although the notified was not the director of the company during the period in which the mobilization of funds by the company ... took place, since the company had incurred the responsibility of reimbursing the money raised by it that could not download, therefore, any person who is or becomes a director of said company will also be responsible for guaranteeing reimbursement by the company.
By restricting Chowdhary's access to the stock market, Sebi said Thursday that it will be banned for a period of four years from the date of this order or until the expiration of four years from the end date of the refunds to Investors as indicated in the order of May 16, 2016, whichever is later. In May 2016, the market regulator had ordered the company and its directors to reimburse the money of illegally mobilized investors along with an annual interest amount of 15 percent. SRS ANS ANS