SEBI bans Rose Valley Real Estate directors
Regulator Sebi today banned Rose Valley Real Estate & Construction and its five directors from the securities market for four years for raising money from the investors without complying with the public issue norms.
A probe by Sebi following a reference from the Corporate Affairs ministry had revealed that Rose Valley Real Estates had come out with seven issues of secured non-convertible debentures (NCDs) from 2001-02 to 2007-08, out of which, in six, the number of allottees was more than 49.
Since the securities were issued to more than 49 people, the offer of NCDs qualified to be a public issue and required their compulsory listing on a recognised stock exchange.
However, Rose Valley Real Estates did not comply with the provision.
According to an order, the firm and its directors also did not issue a prospectus by making all the relevant disclosures.
Noting that the firm and its directors “failed” to comply with requirement relating to public issue and listing of securities, Sebi barred them from buying, selling or dealing in the securities market, directly or indirectly, in any manner whatsoever, for a period of four years.
Besides, Sebi restrained the directors from associating themselves with any listed public company for a period of four years.
The directors are Gautam Kundu, Shibamoy Dutta, Ramlal Goswami, Abir Kundu and Ashok Kumar Saha.
Sebi also banned Subra Dey, Arun Mukherjee, Abir Kundu, Ratan Roy Chowdhury and Mritunjay Saha from the securities market for four years as they had acted as debenture trustees in respect of the issuances of NCDs by the firm without getting registration.