Besides, the Securities and Exchange Board of India has barred these three companies and their directors from accessing the securities market.
The market regulator found that the companies had garnered capital from several investors through issuance of redeemable preference shares (RPS) and had "prima facie" violated various norms.
SEBI observed that issues by these three firms were made to more than 50 people. Under the rules, that made them public issues of debt securities requiring compulsory listing on a recognised stock exchange. They were also required to file their prospectus, which they failed to do.
The regulator, in three separate orders, said that Federal Agro Commercials Ltd (FACL, Kolkata Aryan Food Industries Ltd (KAFIL) and Waris Agrotech (India) Ltd (WAL) are prima facie engaged in fund mobilising activity from the public, through the offer of redeemable preference shares and
as a result of such activities has violated the provisions of the Companies Act.
Accordingly, Sebi has asked FACL, KAFIL and WAL "not to mobilise funds from investors through the offer of RPS or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly, till further directions".
Further, the companies and their directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
These firms and their respective directors are restrained from accessing the securities market. SEBI has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of redeemable preference shares, without prior permission from the regulator as well as not to divert the funds raised from public.
While asking FACL, KAFIL and WAL to provide a full inventory of all its assets and properties, SEBI has also asked these companies to within 21 days from the date of receipt of the order submit all relevant and necessary particulars sought by the watchdog.
The directions shall take "effect immediately and shall be in force until further orders," SEBI said in its Monday's order.
According to SEBI, FACL raised Rs 25.94 lakh from 310 investors, KAFIL mopped-up Rs 49.64 lakh via 115 persons and WAL allotted redeemable preference shares to 475 individuals and mobilised funds amounting to about Rs 36 lakh.