Sebi orders Everlight Realcon to refund investors money

Markets regulator Sebi has ordered Everlight Realcon Infrastructure and its directors to refund the money collected illegally from investors by issuing preference shares.The entities have been directed to refund the money along with an interest of 15% per annum.Besides, the firm and its directors have also been barred from the capital markets for four years.A Securities and Exchange Board of India (Sebi) probe found that the company allotted redeemable preference shares (RPS) to 131 investors and raised about Rs 71.6400000 between 2011 and 2014.Further, the regulator noted that the balance sheet of the company as on March 2012 showed an amount of more than Rs 8.50000000 as 'share application money' pending allotment, for which the company did not provide any explanation."It is therefore clear that the company has mobilised large sums, at least to the tune of Rs 8.50000000. The number of investors is also likely to be large and at least 131," Sebi said.The securities were issued by the firm to more than 50 people, which qualified it as a public issue and requires compulsory listing on recognised stock exchanges. The company was also required to file a prospectus, among other things, which it failed to do.The regulator has restrained the company and its directors from buying, selling or otherwise dealing in the securities market "till the expiry of four years from the date of completion of refunds to investors."In case of non-compliance of these orders within three months, Sebi would register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.Besides, Ministry of Corporate Affairs would initiate the process of winding up of the company.The directions would come into force with immediate effect.