Sebi orders two companies to refund investors' money

Markets regulator Sebi today ordered two companies- Suvidha Land Developers India and Tresty Securities - to refund investors' money which they had raised illegally by issuing preference shares.The two firms and their directors have to refund the money within three months along with an interest of 15% per annum.Besides, the companies and their directors are also barred from the capital markets for a period of four years.A Securities and Exchange Board of India (Sebi) probe found that Suvidha Land Developers had mobilised Rs 2.150000000 by allotting redeemable preference shares (RPS) to 1137 persons between June 2013 and February 2014.Similarly, Tresty Securities had issued RPS to 65 investors between 2012-2014 and raised Rs 14.4300000.Since the shares were issued by these firms to more than 50 people each, it qualified as a public issue that requires compulsory listing on the recognised stock exchange. They were also required to file a prospectus, among other things, which they failed to do."Also, the firms and its directors have been asked to provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.Non-compliance of these orders would make Sebi register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.Besides, the Ministry of Corporate Affairs would initiate the process of winding up of the companies.The directions would come into force with immediate effect.