Market regulator SEBI today barred Ram Kaashyap Investments and one of its promoters from the securities market for a period of two years for alleged fraudulent trade practices concerning its 2010 rights issue.
SEBI said the company had concealed material information and made misleading disclosures with regard to its rights issue in 2010.
In its order, the regulator said it is restraining ” Ram Kaashyap Investments Ltd and its promoter, A Venkatramani from accessing the securities market and further prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, for a period of two years from the date of this order“.
The rights issue opened on November 18, 2010 and closed on December 16, 2010.
Vivro Financial Services was the lead manager while Knack Corporate Services was the Registrar to Issue and Share Transfer Agent to the rights issue of the company.
During a inspection of Knack Corporate Services, in November 2010, Sebi said it noticed that there were several complaints from the investors regarding non—receipt of their Composite Application Forms (CAFs).
It was also observed that Ram Kaashyap Investments had not received the minimum subscription in the rights issue and Venkataramani had failed to bring in his contribution before the closure of the rights issue, Sebi said.
Thereafter, SEBI said it directed Vivro to advise the company to refund the application money to the shareholders, following which the money was given back to the shareholders in January, 2011.