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The Securities and Exchange Board of India (SEBI) has barred Remac Realty and its five directors from the securities market for at least four years for illegal fund raising activities.
The four-year ban would be effective from the date of completing the refund to investors.
Besides, the watchdog has restrained the five individuals from serving as a director or key managerial personnel at any listed company for four years.
In a 10-page order, SEBI said the company and its five directors — Partha Pratim Tewari, Leena Tewari, Reena Vijay, Sandip Chattopadhyay and Debapratim Mazumder — are “jointly and severally liable to wind up its existing collective investment schemes” and refund the money within three months.
The company allegedly raised funds illegally by way of various schemes, including those pertaining to solar products.
In July 2014, the regulator had passed an interim order against the company and its directors, wherein it was barred from collecting money from investors from then existing schemes or launch any new ones.
According to SEBI’s latest order, dated March 19, Remac Realty and the five directors should not sell any assets of the company or any other asset acquired out of funds of the firm, except for making refunds to its investors.
These entities have been banned from “accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market, directly or indirectly,” till refund to investors are complete, as per the order.
After completion of refund, they have to undergo debarment for further four years.
The directors “shall be restrained from holding position as directors or key managerial personnel of any listed company for a period of four years from the date of this order,” SEBI noted.