Securities Exchange Board of India (SEBI) has restrained Federal Agro Commercials, Kolkata Aryan Food Industries and Waris Agrotech from mobilising funds from investors. Besides, the SEBI has barred these three companies and their directors from accessing the securities market. The market regulator found that the companies had garnered capital from several investors through issuance of redeemable preference shares (RPS) and had “prima facie” violated various norms. SEBI observed that issues by these three firms were made to more than 50 people. Under the rules, that made them public issues of debt securities requiring compulsory listing on a recognised stock exchange. They were also required to file their prospectus, which they failed to do.
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