As per SEBI’s investigation, Weird Industries had mobilized Rs. 3.45 crore through the issuance of redeemable preference shares to around 2000 individuals in 2008-2009 and 2009-2010. Apart from this, the company had also mobilized Rs. 14 crores through issuing non-convertible debentures (NCDs) in 2010 and 2011. Since the shares were issued by the company to more than 50 individuals, it qualified as a public issue that requires mandatory listing on a recognized stock exchange, which the firm failed to do. The firm was also required to file a prospectus, which was not done by them.
Securities and Exchange Board of India ordered Weird Industries Ltd (WIL) as well as its directors to refund the money illegally raised from the depositors with an interest of 15 percent per annum. Also, the capital markets regulator has barred the company and its directors from the capital markets for four years.
Now the matter is currently referred to the Justice S. P. Talukdar Committee regarding the refund to the investors. The Committee had successfully recovered money amounting to Rs. 63 lakh. The work is still under process, and soon the latest information will be furnished.
