In a fresh crackdown on illegal fund raising activities, market regulator Securities and Exchange Board of India (Sebi) on Friday barred Alchemist Holdings and its seven directors from raising any money from investors and asked them not to divert any funds or dispose any properties till further orders.
The action against Alchemist Holdings, which was found to have collected more than Rs 400 crore through unauthorised schemes, follows a regulatory order passed by the market regulator in June against Alchemist Infra Realty Limited for raising over Rs 1,000 crore through illicit schemes.
The two companies have common directors between them.
In the latest order passed on Friday, Sebi also asked Alchemist Holdings and its directors to submit their reply to the interim directions within 15 days and explain why further action should not be taken against them for violation of various provisions of the Sebi Act and the Companies Act.
Sebi's directions followed a complaint received by the regulator alleging that Alchemist Holdings was conducting illegal and fraudulent trading activities by carrying on the business of collecting money at a very high interest rate, through different unauthorised schemes framed by it.
After that Sebi decided to analyse the case and observed that Alchemist Holdings mobilised Rs 444.67 crore by issuance of redeemable preference shares. It allotted these shares to 4.26 lakh people on a private placement basis.
Alchemist Holdings is authorised to operate as NBFC to carry on business without accepting public deposits.
"In order to ensure that Alchemist Holdings does not collect further funds and also to safeguard the assets or property acquired through such funds of the investing public till complete details are brought out a final decision is accordingly taken in the matter," the regulator said.
Accordingly, Sebi directed Alchemist Holdings and even its directors - Sunil Kanti Kar, Brij Mohan Mahajan, Balvir Singh, Sukrit Sood, Ashima Sood, Vikramaditya Singh and Chandra Shekhar Chauhan - not to collect any money from investors till further orders.
"Properties or assets, which have been owned or acquired by Alchemist Holdings shall not be disposed of by it without prior permission of Sebi."
The company has also been directed not to divert any funds raised by it from public at large, kept in escrow account or in the custody of Alchemist Holdings.
In its June order, Sebi had said, "An investor/applicant is misled to believe that the company, Alchemist Infra Realty Ltd, is part of the Alchemist Group, whereas the company has contended (before Sebi) that it is not associated with the Alchemist Group."
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