Sebi bans Reliable Multi Managerial Services, directors from markets, orders refund of money

Markets watchdog Sebi on Thursday directed Reliable Multi Managerial Services and its present and former directors to refund Rs 4.770000000 to investors within three months along with an interest of 15% per annum. These entities have also been restrained from accessing the securities market for at least four years, Sebi said in an order. According to the regulator, the company, its directors and promoters had mobilised more than Rs 4.770000000 from over 4,000 investors through issuance of redeemable non-convertible debentures (RNCD). The issuance of RNCD was a "public issue" as the debentures were issued to more than 49 persons which requires registration from Registrar of Companies and mandatory listing on the exchanges, among others. However, the company failed to do so, thereby violating the Companies Act, Sebi said. After finding contravention of the Companies Act, Sebi in February 2018 had barred the entities from securities market and refrained them from diverting any funds raised from public through the offer. In a fresh order on Thursday, the regulator reiterated its findings and thereby directed them to pay back investors Rs 4.770000000 along with interest within a period of three months. Apart from the firm, Sanjay Karmakar, Om Prakash Gupta and Ashim Bosu, who are the present directors of the firm, and former company directors Pintu Dutta, Raju Acharjyar, Kanhaiya Singh Kushwaha and Arjun Majumdar have been barred from the securities markets for a period of four years from the date of completion of refund, the order said. The promoters -- Ashim Bosu, Ganesh Chandra Saha, Pijus Kumar Patra, Pijus Kanti Dey and Sujit Kumar Das -- have also been from markets for four years. In case of failure of repayment, Sebi may recover the amounts from the firm and its directors, the regulator added. Besides, the regulator has refrained Ramavatar and Associates from markets for four years for acting as debenture trustee without obtaining registration from Sebi.