28 entities have been banned for at least four years from the securities market for raising illegal funds from the public, according to Sebi.
The cases involves two different companies — Roofers Infra-Projects Ltd and Rahul Inn Hospitality Ltd — mopping up more than Rs 74 crore by way of issuing secured redeemable non-convertible debentures in violation of regulations.
In separate orders, the watchdog has barred many entities apart from directing some of them to refund the money along with a specified interest to the investors.
Sebi has barred Roofers Infra-Projects Ltd and 20 other entities, including individuals. Similar quantum of punishment has been ordered in the case of Rahul Inn Hospitality Ltd and six others for at least four years.
An enquiry had found that Roofers Infra-Projects raised at least Rs 74.40 crore through issuance of secured redeemable non-convertible debentures during the period from 2009-10 to 2013-14.
The company along with some of the individuals have been directed to refund the money raised through issuance of the debentures, including the application amount, along with an annual interest of 15 per cent till the date of actual payment, Sebi said in an order dated October 6.
With respect to Rahul Inn Hospitality, a similar order directing refund of the money collected, about Rs 24 lakh, from investors was passed by the Securities and Exchange Board of India on October 9.
