Regulator Sebi has barred two ex-promoters of Shrivallis Securities Ltd (SSL) -Subrat Kumar Routray and Snigdha Biswal- from the capital markets for four years in an illegal fund raising case.

In October 2018, Sebi had passed an interim order against Shrivallis Securities and its directors and promoters for illegally raising a sum of Rs 4.4 crore, through a redeemable preference shares issue to at least 421 investors during 2011-12 and 2012-13.

The regulator had barred the company’s promoters and directors from the capital markets, as per the interim order.

Sebi noted that Routray and Biswal were the promoters of SSL when money was raised through the issue of redeemable preference shares.

Routray and Biswal contended that they were not aware of the redeemable preference shares issue and they transferred their shares in SSL to the managing director when they came to know about the said fund raising.

But they failed to prove that they had given a reasonable public notice that the redeemable preference shares were issued without their knowledge or consent.

Thus, both of them failed to make out a case for why they should not be held liable for violation of the public issue norms, Sebi said in an order on Thursday.

Consequently, the regulator has restrained Routray and Biswal from buying, selling or otherwise dealing in securities in any manner whatsoever, directly or indirectly, for a period of four years or till the completion of refund to the investors of SSL, whichever is late.

In a separate order, Sebi has barred Sanatan Banerjee from accessing the capital market for four years in illegal fund raising case of Ganga Sagar Foods & Beverages India Ltd (GSBIL).

The company had raised Rs 43.14 lakh through the issuance of Non Convertible Redeemable Secured Debentures (NCDs) to at least 71 investors in 2012-13 without complying with the public issue norms.

Sebi, through an interim order in February 2019, had barred GSBIL from raising fresh funds, besides, it prohibited the company and its directors from the capital markets.

Banerjee, being the present director of GSBIL, did not take any steps to ensure refund of the money to the investors, which GSBIL was directed to refund through the interim order.

Accordingly, the regulator has barred Banerjee from the capital markets for a period of four years or till the completion of refund to the investors of GSBIL, whichever is later.