Sebi bans Kolkata-based Agragami Agro Farms from markets

Regulator Sebi has barred Kolkata -based Agragami Agro Farms Ltd (AAFL) and its directors from the capital markets for raising funds without complying with the public issue norms. 

The directive would remain in force until further orders, the Securities and Exchange Board of India (Sebi) said in an order dated September 18. 

It had received complaints against the company with regard to mobilization of money through issuance of redeemable preference shares and secured redeemable debentures. 

According to a Sebi probe, AAFL had allotted redeemable preference shares to 60 persons in 2008 09 and 83 persons in 2009 10. It mobilised about Rs 56.98 lakh through such issuances. 

Besides, it raised Rs 192.83 lakh through secured redeemable debentures to 668 persons in 2010 11 and another 133 persons in 2011 12. 

Since these securities were issued to more than 50 investors, this qualified as a public issue, which requires compulsory listing on recognised stock exchanges. Among others, the firm was also required to file a prospectus, which it failed to do. 

“I find that AAFL is prima facie in breach of the provisions of the Companies Act in connection with the aforesaid offer and allotment of equity shares; redeemable preference shares and secured redeemable debentures,” Sebi Whole Time Member G Mahalingam said in an order dated September 18. 

Accordingly, Sebi has asked AAFL and its directors/ promoters — Siddhartha Sankar Roy, Basudeb Sardar, Sabyasachi Roy, Hasem Molla, Mukul Sardar, Bhabesh Halder and Susanta Sardar, not to access the securities market either directly or indirectly, or associate themselves with any listed firm or company intending to raise money from the public. 

They have been prohibited from disposing of their assets or diverting funds raised from public by issuing these securities. 

Besides, Sebi said that Ramesh Jorddar and Sunati Ghosh would not act as Debenture Trustee in respect of debentures of AAFL and would not take up any new assignment in any new issue of securities in a similar capacity.