New Delhi: Cracking down on illegal investment schemes, capital markets regulator Sebi on Monday ordered Weird Infrastructure Corp to refund over Rs 16 crore to investors, which it had illegally raised from them.
Besides barring the firm and its directors from capital markets for four years, Securities and Exchange Board of India (Sebi) also directed Weird Industries to pay 15 per cent interest annually along with the refund amount.
A probe by Sebi found that the company had allotted 1,62,794 Non-Convertible Debentures (NCDs) worth Rs 16.28 crore without complying with the 'public issue' norms.
Accordingly, Sebi has asked Weird Infra and its promoters and directors to jointly "refund the money collected by the company through the issuance of NCDs to the investors. With an interest of 15 per cent per annum compounded at half yearly intervals, from the date when the repayments became due to the investors till the date of actual payment."
After completing the repayments, Weird Infra and its promoters and directors would have to file a report of such completion of repayment with Sebi, within a period of three months from the date of this order, certified by two independent Chartered Accountants.
Sebi has barred the company and its promoters and directors from the capital markets and said such debarment would be in place for four years from "the date of completion of refunds to investors".
In case the firm fails to comply with the orders, Sebi would initiate attachment and recovery proceedings, besides registering a civil/criminal case against Weird Industries among others.
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