Sebi bans Grass Root, 13 others from markets
20 Oct 2017 10:35 PM IST
New Delhi: Regulator Sebi has banned Grass Root Finance & Investment Company (India) Ltd and 13 others from the capital markets for raising funds without complying with the public issue norms.
A probe by Sebi found that the company had issued equity shares to 9,321 people between 1995-96 and 2006-07 and raised Rs 6.80 crore through such issuance. Since these shares were issued to more than 50 investors by the company, it qualified as a public issue under the norms, which required compulsory listing on recognised stock exchanges. Among others, the firm was also required to file a prospectus, which it failed to do.
In an interim order passed on October 18, Sebi said that Grass Root is prima facie in breach of the provisions of the Companies Act in connection with the allotment of shares.
It has asked the individuals not to dispose of any of their assets nor divert any funds raised from the public through the offer and allotment of equity shares.
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