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Securities and Exchange Board of India (SEBI) has asked West Bengal-based I-Core E-Services Ltd not to mobilise funds and prohibited it from issuing prospectus or offer document.
A SEBI order has restrained the unlisted company from “mobilizing funds through issue of equity shares, debentures, preference shares or through issuance of any kind of security to the public”.
The order, issued by Prashant Saran, whole time member of SEBI, on July 25, was made public on Friday.
In its preliminary investigation SEBI found that the company was engaged in unlawful fund-mobilising activity through the issue of shares, non-convertible debentures and redeemable preference shares without complying with provisions of the Companies Act, 1956 and SEBI regulations.
It raised funds though various instruments from several thousand investors.
SEBI also found a number of irregularities in its accounts and in its disclosures to the Registrars of companies.
SEBI, which acted on several complaints from investors, also came across alleged non-return of deposited money after maturity.
SEBI also directed the company not to dispose off assets of the company or divert any funds raised from the public.
The order asked the company to “cooperate” with it in terms of sharing information and documents. It asked the company to reply within 30 days from date of the order.
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