Sebi orders two companies to refund investor money

Capital markets regulator Sebi has ordered two companies, SEBA Real Estate and MaxBe Green Provision, to refund investors' money, which they had illegally raised by issuing preference shares.The firms and their directors are asked to refund the money along with an interest of 15% per annum.Moreover, Securities and Exchange Board of India (Sebi) has also barred the companies and their directors from the capital markets for four years.SEBA Real Estate raised Rs 25.340000000 from 41,298 investors between 2006-2011, while MaxBe Green Provision mobilised Rs 1.360000000 from 1,253 persons between 2011-2013, without complying with the public issue norms.Since the firms issued shares to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges.The companies and their directors have been restrained from the securities market "till the expiry of four years from the date of completion of refunds to investors".The orders will come into force with immediate effect.In case the two companies fail to comply with the directive within three months, Sebi would make a reference to the state government or local police to register a case against them for fraud, cheating and misappropriation of public funds.Besides, Corporate Affairs Ministry would be asked to initiate the process of winding up of the companies.