Action against Golden Pariwar Holding and Developers, promoters for illegal fund mobilising

Markets regulator Sebi Wednesday barred Kolkata-based Golden Pariwar Holding and Developers and its seven promoters from raising funds from the public with immediate effect for carrying out illegal fund mobilising activity. Besides, the regulator has also ordered the entities not to dispose of any assets or divert any funds raised from the public through mobilising funds. The move comes after the regulator received a complaint from an individual that a fund mobilising activity was carried out by Golden Pariwar.

In an order, Sebi said Golden Pariwar issued redeemable preferential shares (RPS) to 54 and 66 persons during 2011 and 2012, respectively, collecting over Rs 11 lakh. Since the shares were issued to more than 49 people, the offer of RPS qualified to be a 'prima facie' public issue and required compulsory listing of the securities on a recognised stock exchange. Among the other requirements, the firm was also required to register a prospectus with the Registrar of Companies (RoC) under the Companies Act.

However, the firm failed to do so and the "company prima facie appears to have violated the provisions... of Companies Act," the regulator said in an interim order. Accordingly, Sebi passed directions against the firm and its promoters -- Sukalyan Biswas, Debamita Biswas, Bina Biswas, Susmita Biswas, Suprakash Biswas, Sushyamal Biswas and Sukumar Biswas -- and asked them to reply within 21 days as to why directions of refund to the public along with interest should not be passed against them.

In a separate order, Sebi imposed a fine of Rs 7 lakh on Praveen Kumar Agarwal for fraudulent trade by executing reversal trades in the shares of Pressman Advertising Ltd. By indulging in such activities, Agarwal violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, the regulator said in an order dated January 8.

(With inputs from agencies.)