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Sebi restrains Indus Weir Industries, directors from securities mkt for 3 yrs

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NewsDrum Desk
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New Delhi, May 8 (PTI) Sebi on Wednesday barred 10 entities, including Indus Weir Industries, its directors from the securities market for three years for indulging in a fraudulent scheme of raising funds from investors by issuing preference shares without complying with the market norms.

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Further, Sebi directed Indus Weir Industries Ltd (IWIL), its managing directors, Prince Rana and Anuresh to jointly and severally refund the money collected through the issue of RPS to the allottees along with an interest of 8 per cent per annum within five months.

Also, IWIL, Rana and Anuresh were restrained from accessing the capital market for three years till the date of refund of money to the allottees. In addition, Rana and Anuresh were barred by Sebi from associating themselves with any listed public company or any Sebi-registered intermediary for three years or till the date of refund of money to the allottees, whichever is later.

In its investigation, Sebi found that IWIL had mobilised funds from a large set of investors under the guise of private placement and not followed the process of issuance of securities through public issue norms.

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"I am of the view that, Anuresh (MD of IWIL for the period from December 2010 to April 2013), Prince Rana (MD of IWIL since April 2013) are the 'Officers in Default' and therefore, are liable along with IWIL for refund of the money raised through the issuance of RPS to 32,454 investors and mobilised funds amounting to Rs 33.39 crore during the period 2010-11 to 2013-14," Sebi's whole time member Kamlesh C Varshney said in the final order.

The noticees (Anil Kumar Trivedi, Rasheed Quamar, Mazharul Quadri, Parthsarthi Adhikari, Shyam Sunder Seth, Paras Nath Sharma and Balchand Chaurasiya) were associated with the company at the time of issuance of RPS and that they were associated with the company in the capacity of a director, Sebi said.

These noticees through their failure to act diligently and by giving their consent for the RPS issue made by the company in non-compliance with the public issue norms and contravened the Sebi (NCRPS) regulations.

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Accordingly, Sebi prohibited noticees from accessing the capital market by issuing a prospectus or any offer document soliciting money from the public and further prohibited from the securities market for three years.

The order came after the Securities and Exchange Board of India (Sebi) during the year 2013, received complaints pertaining to the issuance of Non-Convertible Redeemable Preference Shares (RPS) by IWIL.

The matter was examined by Sebi, wherein it was observed that IWIL had mobilised money amounting to Rs 33.39 crore through issuance of RPS from 32,454 investors during the FYs 2010-11, 2011-12, 2012-13 & 2013-14.

Thereafter, Sebi commenced examination of information and passed an interim order cum show cause notice on May 25, 2023, against IWIL and its directors. PTI HG HG MR

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