Sebi has ordered Bharatiya Real Estate Development to refund investor money

Q: SEBI has found that the company had mobilised Rs 99.06 lakh by issuing RPS to 294 investors between 2011-2013.

Sunil Joshi, Mumbai

22nd January 2016

Real estate News in Mumbai

sebi

the securities and exchange board of india

bharatiya real estate development

ministry of corporate affairs

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Replies (2)

Hi friends,
Since the shares were issued by the firm to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges. The company and its directors were also required to file a prospectus, among other things, which they failed to do.

Mukhesh, Noida

22nd January 2016

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@Mukesh,
The firm and its directors are stopped from approaching the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, with immediate effect.

Ravindra Singh,

22nd January 2016

True and in case the company fails to comply with these orders in three months, Sebi will make a reference to the state government or police to register a case against them for fraud, cheating and misappropriation of public funds.

Mukhesh, Noida

22nd January 2016

Hi Sunil,
It's really very bad that they are looting the common people like that. Because of that issues, Capital markets regulator Sebi has ordered Bharatiya Real Estate Development and its directors to refund the money it had illegally raised by issuing redeemable preference shares.

Ravindra Singh,

22nd January 2016

Comment

It is true Ravi but they are getting punishment in BJP rule. The company has been directed to refund the money raised through RPS along with an interest of 15%/annum. Over and above, the firm and its directors have also been stopped from the capital market for a period of 4 yrs.

Himani,

22nd January 2016