Sebi restricts Polaris Realtors from raising funds from public
Pulling the plug on illegal fund raising by Polaris Realtors India, capital markets regulator Sebi today barred the company and its directors from mobilising money through issuance of securities.
Pulling the plug on illegal fund raising by Polaris Realtors India, capital markets regulator Sebi today barred the company and its directors from mobilising money through issuance of securities.
The move follows the Securities and Exchange Board of India (Sebi) receiving a reference from the Registrar of Companies (RoC), Madhya Pradesh & Chhattisgarh as well as Gwalior stating that Polaris issued secured debentures on private placement basis to more than 49 subscribers.
Sebi found that the company raised Rs 10.29 lakh from 423 people through issuance of Non-Convertible Redeemable Secured Debentures (NCDs) during 2012-13.
The company, through such activity, had allegedly violated various norms, Sebi said.
The regulator observed that allotment of NCDs by Polaris was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
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