Sebi orders 4 companies to repay investors' money

NEW DELHI: Sebi today ordered four companies -- ALchemist Capital, Rising Agrotech, Kolkata Aryan Food Industries and IHI Developers India -- to refund the money they had illegally raised from investors.

Besides barring the firms and their directors from capital markets for four year, Securities and Exchange Board of India (Sebi) also directed these companies to pay interest to the investors.

ALchemist Capital raised Rs 165 crore from over 28,000 investors, Agrotech mobilised Rs 1.35 crore from 996 people and Kolkata Aryan collected Rs 49.64 lakh from 115 persons. They raised money by allotting preference shares to investors.

These issues were made to more than 50 people which, under the rules, made it a public issue requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which they failed to do.

IHI Developer was running a collective investment scheme (CIS) without obtaining regulatory nod from Sebi.

ALchemist Capital and Kolkata Aryan Food Industries have been ordered to repay the money due to investors along with a 15 per cent interest annually.

Rising Agrotech has been asked to "refund the money collected by the company the issuance of preference shares with returns that were promised by the company to its investors" and in case of any delay in making the repayments, the company has to pay a 15 per cent interest annually.

IHI Developers has been directed to wind up the existing CIS and refund the money collected by the firm under the schemes "with returns which are due to its investors... within a period of three months from the date of this order."

Sebi has barred the companies and their promoters and directors from the capital markets and said such debarment would be in place for four years from "the date of completion of refunds to investors".

In case the firm fails to comply with the orders, Sebi would initiate attachment and recovery proceedings, besides registering a civil/criminal case against these companies among others.