Sebi bars Sukhchain Hire, Hooghly Agrotech from raising funds

Pulling the plug on yet another illicit investment schemes, market regulator Sebi today barred two firms -- Sukhchain Hire Purchase Limited and Hooghly Agrotech Limited -- from raising funds from the public through the issuance of securities.Securities and Exchange Board of India (Sebi) also restricted directors of these companies from the capital markets.The regulator said each firm issued Non convertible Debentures (NCDs) to 50 or more persons, they were under a legal obligation to get listed on a stock exchange.Among others, it was also mandatory for the companies to bring out a prospectus with respect to the public issue.However, they failed to comply with these provisions.Accordingly, Sebi asked companies not to "mobilise any fresh funds from investors through the Offer of NCDs or through the issuance 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."The company and its directors have also been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.Further, Sebi has asked them not to divert or dispose any funds raised from public at large including assets brought from such money.Also, Sebi has prohibited debenture trustee Hemant Sahu and Hooghly Debenture Trust (represented by its trustee Bijay Sarkar) from continuing with their present assignment in respect of the current NCDs issue and also from taking up any new assignment in a similar capacity.These directions will take effect "immediately and shall be in force until further orders."According to Sebi, Sukhchain Hire Purchase has allotted NCDs to 425 allottees which raised Rs 7.480000000 during 2010-11 to 2013-14, while Hooghly Agrotech issued debentures worth Rs 50000000 during 2009-10 to 2011-12 to over 49 investors.