Sebi today barred Wasankar Wealth Management from raising funds from investors through issue of securities and has also prohibited the firm and its directors from dealing in the capital markets till further directions.
The market regulator found that Wasankar Wealth had issued 'Non-Convertible Preference Shares (NCPS)' to 228 investors and mobilised funds amounting to around Rs 12.89 crore during the financial Years 2009-10, 2010-11 and 2012-13.
The company through such activity had allegedly violated various norms, Sebi said.
Sebi observed that Wasankar Wealth share issue was made to over 50 persons which under the rules made it a public issue of debt securities and hence would require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others, which it failed to do.
In an order today, the Securities and Exchange Board of India (Sebi) said that steps were required in the instant matter "to ensure only legitimate fund raising activities are carried on by Wasankar Wealth and no investors are defrauded".
Accordingly, Sebi has asked Wasankar Wealth to "not mobilise funds from investors through the issue of NCPS or through the issue of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".
Further, the firm and its 5 promoters/directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.
"Wasankar Wealth Management and its promoters/Directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions," Sebi said in the order.
Sebi has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of NCPS, without prior permission from the regulator as well as not to divert the funds raised from public.
It has also asked the company to provide a full inventory of all its assets and properties.
The promoter/directors restrained are -- Prashant Jaidev Wasankar, Mithila Vinay Wasankar, Vinay Jaidev Wasankar, Bhagyashree Prashant Wasankar and Abhijeet Jayant Chaudhari.