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Sebi orders 5 firms to refund investors money in 3 months

New Delhi: Markets regulator Sebi has ordered five companies and their directors to refund in three months the money raised from investors without complying with the public issue norms. The companies are AVM Real Estate & Allied, Goldmine Industries, Cemendia Infrastructures, Aryan Agro Projects and Omisha Agri Industries (India). The regulator has barred the entities from the securities market for four years and also directed them to refund the money along with an interest of 15 per cent per annum.

All the five firms and their directors were barred from the securities market till further directions through separate interim orders issued earlier. While AVM Real Estate had mobilised about Rs 63.5 lakh from at least 156 persons, Goldmine Industries raised Rs 19.41 lakh from more than 128 investors. Similarly, Cemendia Infrastructures mobilised Rs 1.31 crore from 1,665 allottees and Aryan Agro Projects had issued securities to 87 investors. Omisha Agri Industries mopped up Rs 33.27 lakh from 82 allotees.

The securities were issued by the firms to more than 49 investors each, which qualified as a public issue that requires compulsory listing on the recognised stock exchange. They were also required to file a prospectus, among other things, which they failed to do. In five separate and similarly-worded orders, Sebi said the entities would be barred for four years or till the date of refund of money to the allottees, whichever is later. In case the companies fail to comply with the directions, the regulator may initiate appropriate action in accordance with the provisions applicable laws. The orders would come into force with immediate effect