According to the Securities and Exchange Board of India (Sebi), the company issued redeemable preference shares worth Rs 23.18 crore to 25,231 people between 2008-09 and 2012-13.

Since these shares were issued to more than 50 investors, these qualified to be a public issue, which requires compulsory listing on recognised stock exchanges.

Among others, the firm was also required to file prospectus, which they failed to do.

In an interim order dated December 30, Sebi Whole Time Member S Raman said, "... I find that there is no other alternative but to take recourse through an interim action against HHL and its directors, for preventing that company from further carrying on with its fund mobilising activity under the offer of redeemable preference shares."

The present directors of the company who are banned are Goutam Banerjee, Santi Rajan Banerjee and Bidhan Chandra Ray.

While, Pijush Gupta, Nihar Ranjan Khuntia, Balaram Chatterjee, Asit Roy, Subodh Kumar Dutta, Pradip Sarkar, Raja Banerjee, Pradip Bose, A K Goswami and Ashok Chowdhury are the past directors who are also prohibited from the markets.

The directions shall take effect immediately and shall be in force until further orders, Sebi said.

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