Goldmine Agro Barred from Capital Markets for 4 Years; Told to Refund Investors | CORPORATE ETHOS

Goldmine Agro Barred from Capital Markets for 4 Years; Told to Refund Investors

By: | July 13, 2017
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July 13: Goldmine Agro Ltd (GAL) and its directors have been banned by market regulator Securities and Exchange Board of India (Sebi) from accessing the capital markets for a period of four years. They have also been directed to refund investors’ money which was illegally raised by issuing securities.

It has been reported that Goldmine Agro had mopped up funds illegally through issuance of non-convertible redeemable debentures (NCDs). Sebi said in its order that Goldmine Agro had raised an amount of Rs 35.62 crore via issuing NCDs to investors during 2009-10 and 2011-12. The company, however, had not provided details about the number of allottees. This is a violation of norms, Sebi said.

Though rules stipulate that a company allotting NCDs as a public issue should be compulsorilybe listed on a recognised stock exchange, the norms wereviolated. A prospectus also had to be filed.

The regulator, while ordering a halt on buying, selling or dealing in the securities markets for four years, has directed Goldmine Agro and its past and present directors to refund the money collected through the issuance of NCDs, along with an annual interest of 15 per cent. Till the refunds are made fully, the ban will stay.

If the company fails to comply with the order, the regulator could direct registering a case against them for fraud, cheating and misappropriation of public funds, a report added.