Sebi bars MaxBe Green and Jeevan Suraksha from raising funds

Capital market regulator Sebi today barred two companies - MaxBe Green ProVision and Jeevan Suraksha Real Estate - from mobilising funds through the issuance of securities, with immediate effect.

In two separate orders, the Securities and Exchange Board of India has also restricted the companies and their directors from dealing in the securities market till further orders.
Both the companies had raised funds through issuance of Redeemable Preference Shares to investors.

According to Sebi, these activities were prima facie in violation of various norms.
While MaxBe Green is a Kolkata-based firm, Jeevan Suraksha is incorporated in Assam.
Sebi noted that as the issue by companies was made to 50 or more persons, the company was under a legal obligation to get listed on a stock exchange.

It was also mandatory, among other things, for the firms to bring out a prospectus with respect to the public issue.

Sebi in its interim orders noted that steps were required to be taken in the matter "to ensure that only legitimate fund raising activities are carried on" by the companies and "no investors are defrauded".

Consequently, the regulator has directed the companies not to mobilise funds from investors through issuance of equity shares or any other securities, till further orders.

The firms as well as their directors have been prohibited from the capital markets as well as from issuing offer documents, advertisement for soliciting money from the public for the issue of securities, till further directions.

Further, the Sebi order has asked them not to divert any funds raised from public at large.
The companies would also have to provide a full inventory of all its assets and properties and provide all relevant information to Sebi within 21 days from the date of receipt of the order.