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Securities and Exchange Board of India (SEBI) is set to auction properties of three companies, Infinity Realcon, Bishal Group of Companies, and Sumangal Industries, to recover money that was illegally raised from investors. A total of 26 properties will be auctioned, and the reserve price is set at over Rs. 21 crore. Thirteen properties belong to Infinity Realcon, 10 belong to the Bishal Group of Companies, and three belong to Sumangal Industries.
The auction will be conducted online on May 30th, and Adroit Technical Services has been appointed as the auction service provider. The regulator has asked the bidders to conduct their independent inquiries about the properties, their encumbrances, title, and claims, among others, before submitting their bids.
Redeemable preference issues (RPS) were issued by Infinity Realcon from 2009–10 to 2012–13, raising more than Rs. 19 crore from close to 25,000 investors. The Bishal Group of Companies broke rules regarding public offerings by issuing RPS and raising money in this way. Funds totalling Rs. 4 crores were raised by Bishal Distillers, Rs. 3 crores by Bishal Agri-Bio Industries, and Rs. 2.84 crore by Bishal Horticulture and Animal Projects.
In addition to the Rs 2.75 crore that Bishal Abasan India raised, Rs 89 crore was made available through the sale of NCDs. Through unauthorised collective investment schemes (CIS), Sumangal Industries was able to obtain Rs. 85 crore from investors. The company offered investors 100% gains in just 15 months through unlawful potato purchase investment schemes.
The SEBI has taken steps to ensure that such illegal activities are curbed in the future, and they have taken strict actions against those who have violated the laws. The auction of these properties is a step in that direction. The SEBI has been actively monitoring and regulating the securities market to protect investors' interests and maintain market integrity. The SEBI has also introduced measures to increase transparency and promote fair competition in the market.
In the past, the SEBI has taken strict action against entities that have violated market regulations. For instance, the SEBI had banned over 200 entities from the securities market in October 2019 for non-compliance with various regulations. The entities were found to be indulging in fraudulent activities and violating various norms, such as insider trading and market manipulation. In another instance, the SEBI had directed two entities to refund over Rs. 15 crore to investors in January 2020. The entities had raised funds from the public through the issuance of securities without complying with the public issue norms.
In conclusion, the SEBI's decision to auction properties of three companies is a step towards protecting investors' interests and maintaining market integrity. The SEBI has been actively regulating the securities market and taking strict action against those who have violated market regulations. The SEBI's efforts to increase transparency and promote fair competition in the market will help to ensure that the securities market remains a safe place for investors to invest their money.
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