According to SEBI, the company raised Rs 30.50 lakh by issuing equity shares to 77 people during the financial year 2009-10.
The Capital Market Regulator, Indian Securities, and Exchange Board (SEBI) have asked its family to return Agro Farming Developers India and its directors to the money that the company mobilized with the investors wrongly (illegal). Also, SEBI has restricted this company for four years from doing business in the capital market.
According to SEBI, the company had raised Rs 30.50 lakhs by issuing equity shares to 77 people during the financial year 2009-10. Apart from this, in the financial year 2010-11, the company raised Rs 41.85 lakh by distributing equity shares to 53 persons. As the number of these shares was more than 49 (more people were allocated), it was necessary to have them listed in the stock market, but the company did not do this.
What is the order of SEBI:
SEBI’s full-time member, G. Mahalingam said in his order, “Therefore, in my view, the company and its directors are involved in the activities of raising money from the common public through such offers and equity shares, which The violation of the provisions of the Companies Act, 1956 and ICDR Regulations. SEBI has instructed the company and its promoters and directors Regul close, Swaminath Singh, and Partha Gop Majumdar to return the amount raised to investors with annual interest of 15 percent.