Sebi bans Ambitious Diversified Projects from capital markets

Capital markets regulator Sebi barred Ambitious Diversified Projects Management Ltd (ADPML) and its directors from the securities markets.

The Securities and Exchange Board of India (Sebi) found that ADPML had raised Rs 1.63 crore through issuance of non-convertible debentures (NCDs) between 2010-11 and 2012-13.

However, details of number of allottees were not provided.

"ADPML, by its non-cooperation, has tried to deliberately conceal the true nature of its fund mobilising activities. I, therefore, feel it is an eminently reasonable conclusion to draw...that the Offer of NCDs was subscribed several times beyond the threshold for a private placement," Sebi Whole Time Member S Raman said in an interim order.

"In light of the same, I find that the Offer of NCDs was nothing but a public issue of securities. In these circumstances, regulatory intervention for protection of investors' interests is doubtless necessitated," he added.

Accordingly, Sebi said "ADPML shall forthwith cease to mobilise funds from investors through the Offer of NCDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions." Besides, the markets watchdog has prohibited the firms and its directors from accessing the securities market till further orders.

Also, they have been directed not to dispose of any of the properties or alienate or encumber any of the assets owned/acquired by the firm through NCDs without prior permission from the regulator.

The regulator has prohibited Ambitious Diversified Trust (represented by Sriparna Gupta) from continuing with its assignment as debenture trustee in respect of ADPML's issue.

It is also restrained from taking up any new assignment involving any new issue of debentures in a similar capacity.

The directions shall take "effect immediately and shall be in force until further orders", Sebi said.