Sebi bans GMS Infrastructure, directors and promoters from securities market

Sebi Friday banned Kolkata-based GMS Infrastructure, its seven former and present directors and five promoters for at least four years from securities markets for violating public issue norms.

Besides, the regulator asked the entities to "jointly and severally" refund the money collected through redeemable preference shares within three months from the date of the order.

The regulator in an order said that the entities raised Rs 13.44 lakh from 112 investors through the offer of redeemable preference of shares (RPS) during financial years from 2010 to 2013.

The offer of RPS was deemed to be a public issue as it was made to more than 49 allottees, Sebi said.

The company, having made a public issue of RPS, was required to compulsory list the shares on a recognised stock exchange. It was also required to file a prospectus, among other things under Companies Act which it failed to do so, the regulator added.

With regard to directors (present and past), the regulator said they were holding position of directorship during the offer of RPS, hence are liable for action, Securities and Exchange Board of India (Sebi) said.

Similarly being promoters of the firm, they are liable for the offer against the norms of deemed public issue, the regulator added.

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Accordingly, Sebi barred GMS and its present and former directors -- Ashim Mitra, Sanjoy Mitra, Lopamudra Bandyapadhyay, Biswajit Das, Dinesh Chowhan, Chandan Biswas and Rajesh Singh -- while promoters are Soumen Paul, Aparna Roy Chowdhury, Mina Mukherjee, Gita Karmakar and ADB Food Products Pvt. Limited.

In February, Sebi through an interim order had refrained the five promoters from accessing securities market, hence the four-year ban would include the debarment period of nine months already served by the promoters, Sebi noted.