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Sebi orders attachment of property in En Aromatic case

Sebi orders attachment of property in En Aromatic case

New Delhi: Markets regulator Sebi has ordered attachment of one property of a director of En Aromatic & Petro Chemicals to recover Rs 61.49 crore in a case related to illegal fund raising by issuing unregistered redeemable preference shares (RPS).

The property is located in Thane district of Maharashtra, according to a Securities and Exchange Board of India (Sebi) order dated July 18.

In November 2015, the market watchdog had ordered the firm and its directors to refund investors' money and had barred them from the capital markets for four years.

The attachment order comes after the company and its directors failed to pay the dues to its investors.

The company had mobilised Rs 61.49 crore by issuing RPS to more than 89,000 individuals between 2003-04 and 2010-11.

Since the shares were issued by the firm to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges.

Moreover, the company and its directors were also required to file a prospectus, among other things, which they failed to do.

PTI

PTI

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