It was alleged that Tribhuvan Agro Project Ltd (TAPL) garnered more than Rs 9 crore through issue of non-convertible debentures (NCDs) and redeemable preference shares (RPS) to
close to 11,000 people.
The Securities and Exchange Board of India (Sebi) found that the company had issued securities to 50 or more persons as so was under a legal obligation to get listed on a stock
Among others, it was also mandatory for the company to bring out a prospectus with respect to the public issue. However, it failed to comply with these norms.
In an interim order issued on February 24, Sebi said "TAPL is prima facie engaged in fund mobilising activity from the public, through the offer of RPS and NCDs" and as a result
of such activities has violated the provisions of the Companies Act.
Accordingly, Sebi prohibited the company and its directors "from mobilising funds through the offer of RPS and NCDs or through the issuance of equity shares or through any other form of securities to the public and/ or invite subscription in any manner whatsoever either directly or
indirectly till further directions."
The company and its directors are restrained from accessing the securities market till further directions.
Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of equity shares, without prior permission from the regulator as well as not to diver.
While asking TAPL to provide a full inventory of all its assets and properties, Sebi also directed the company to submit all relevant and necessary particulars sought by the watchdog.
Also, Sebi prohibited debenture trustee --Tribhuvan Agro Debenture Trust (represented by its Trustees, Sukumar Mondal, Sanjay Nayak, Sujit Kumar Goswami, Rajib Das and Mohammed Sunwas Ali), from continuing with its present assignment and also barred it from taking up any new assignment in a similar capacity.
These directions would come into force with immediate effect.
"During the financial years 2007–08, 2008–09, 2009–10 and 2010–11, TAPL allotted RPS to a total of 10,882 individuals /investors and mobilized funds amounting to approximately Rs
9.25 crore," Sebi noted.
Further, TAPL mopped-up Rs 50 lakh by allotting NCDs to 70 investors during the financial Years 2007–08 and 2008–09, it added.

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