The firm and its directors have to "jointly and severally" refund the money to the holders of NCDs, with an annual interest of 15 per cent, within a period of 90 days from the date of the order.
Till the refund is made, the firm and the directors have been restrained from the capital market. Following the completion of refund, they would be banned from the markets for a period of four years and prohibited from buying, selling or otherwise dealing in securities.
The directors of the firm, including the current and former ones, are Paritosh Panda, Dhiman Roy, Nitish Barman, Baidyanath Mandal, Subhra Jyoti Sardar, Satyanendra Nath Mondal, Sreemon Ghosh, Taslim Arif Khan, Nilima Ponda and Lipika Bhaduri.
Rural Economic Welfare Trust, represented by Durga Ghosh and Ramendra Nath Mistry, had acted as debenture trustee for the offer and issue of NCDs by Greenbang Agro, without having registration from the Securities and Exchange Board of India (Sebi).
For violating the Sebi (Debenture Trustees) Regulations, the regulator has also banned Ghosh and Mistry from the securities market for a period of one year.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.