SEBI banned Life Care Infra Tech Limited and its Directors to collect money from investors

Special Correspondent,

Mumbai, 23 September 2015

Alleged Chit Fund Company Life Care Infra Tech Limited and its Directors are in the deep trouble as market regulator SEBI issued an order to stop collection of the funds from the market in any manner and refund all money to its investors with immediate effects.

Shri Prashant Saran, Whole Time Member, SEBI has passed an order on September 14, 2015, wherein M/s. Life Care Infra Tech Limited and its directors inter-alia have been directed to refund the money collected by the company through issuance of Redeemable Preference Shares, with interest at the rate of 15% per annum compounded at half yearly intervals and also not to access the capital market in any manner. The company and its directors have also been restrained and prohibited from buying, selling or otherwise dealing in the securities market, from the date of this order till the expiry of four years from the date of completion of refunds to investors.

The directors are also restrained from associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The above directions shall come into force with immediate effect and shall continue to be in force from the date of this Order till the expiry of 4 years from the date of completion of refunds to investors as directed above.

The company was engaged in fund mobilizing activity through issuance of Redeemable Preference Shares, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956.

The company and its directors shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect.

SEBI had passed an interim order on November 03, 2014 in the matter, whereby inter-alia, it directed the company and its promoters/directors not to collect any more money from investors through issuance of securities in any manner whatsoever.

The present order dated September 14, 2015 brings to conclusion the above said proceedings with the aforesaid directions.