The ban is imposed on the company and its directors till further directions from the regulator. It was alleged that the firm was 'prima facie' engaged in fund mobilising activity from the public, through the offer of non-convertible debentures (NCDs).
A sum of Rs 50.11 crore was raised by the company from 106 investors. The securities were issued by the firm to more than 49 persons, which qualified it as a public issue that requires compulsory listing on recognised stock exchanges. It was also required to file a prospectus, among other things, which it failed to do.
The firm and its directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.

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