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SEBI bars Odisha based NBFC from securities market


Odisha Sun Times Bureau
Mumbai, Jan 29:

Securities and Exchange Board of India (SEBI) today barred Odisha-based Krutibibha Corp, as well as its directors, from the securities market for illegally raising around Rs 4 crore from investors.


SEBI has restrained this entity from the capital market and from soliciting funds from public till further directions.

Krutibibha Corp was found to have raised money illegally by issuing Redeemable Preference Shares using the proceeds to purchase land and houses in different parts of the state.

By way of such securities, the company raised about Rs 3.84 crore during the financial years 2011-12 and 2012-13.

Apart from the company, its directors — Tapan Kumar Sethi, Ranjit Kumar Sethi, Dayanidhy Behera and Puspa Sethi — have been restrained from the securities market.

“It is also disconcerting that an amount of Rs 1.48 crore, which is approximately 39 per cent of the total amount of Rs 3.84 crore (the amount mobilised under the offer of RPS), has been lent to directors or to companies in which the directors have interests (related parties),” SEBI said in its order against Krutibibha Corp.

This apart, SEBI has also prohibited the concerned company from issuing prospectus or any offer document or advertisements to solicit money from the public for issue of securities.

The ban would be in place till further directions, SEBI said.