Regulator Sebi has banned Grass Root Finance & Investment Company (India) ltd and 13 others from the capital markets for raising funds without complying with the public issue norms. A probe by Sebi found that the company had issued equity shares to 9,321 people between 1995-96 and 2006-07 and raised Rs 6.80 crore through such issuance.
Since these shares were issued to more than 50 investors by the company, it qualified as a public issue under the norms, which required compulsory listing on recognised stock exchanges. Among others, the firm was also required to file a prospectus, which it failed to do.