Sebi directs PAFL Industries to refund investors' money

Market regulator Sebi has ordered PAFL Industries to refund to investors over Rs 20000000 that it had raised illegally from them.Barring the company and its directors from the securities market for four years, Sebi has asked PAFL to repay the money alongwith an annual return of 15%. Securities and Exchange Board of India (Sebi) probe found that the company issued redeemable preference shares (RPS) worth Rs 2.130000000 to 1,439 persons without complying with the 'public issue' norms.These issues were made to more than 50 people which, under the rules, made it a public issue requiring compulsory listing on a recognised stock exchange. It was also required to file a prospectus, which they failed to do.Accordingly, Sebi has asked the firm and its promoters and directors to "jointly and severally, shall forthwith refund the money collected by the company through the issuance of RPS... with an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment".PAFL and its promoters and directors have been restrained from the securities market and said the ban will continue for four years "from the date of completion of refunds to investors".Among the barred individuals are Anjan Das, Sankar Saha, Satyacharan Mondal, Mita Mukherjee, Sanjoy Biswas, Abdul Malek, Krishna Dakuya, Mabud Hossain, RejaulSeikh and Sudip Bala.In case the firm fails to comply with the orders, Sebi would initiate attachment and recovery proceedings, besides registering a civil/criminal case against PAFL among others.