Falkon Industries India Limited Refund News

Falkon Industries India Limited Refund News

It has come to light that Falkon Industries had raised Rs. 48.58 lakh through the issue of redeemable preference shares (RPS) to around 714 individuals in 2009-2010. 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.    

Capital markets regulator, SEBI ordered Falkon Industries India Ltd (FIIL) as well as its directors to jointly and severally refund the money illegally raised from the investors with an interest rate of 15 percent annually. The Securities and Exchange Board of India has also barred the firm and its directors to access the capital markets for four years from the date of effecting the refund.

Since Falkon Industries have failed to refund its investors, SEBI had directed the company to provide detailed information of all their assets and properties, along with bank details, Demat accounts, and holdings of shares/securities.

As of now, the matter of Falkon Industries India Ltd. is still under investigation. More information will be made available to the investors when further actions will be taken by the assigned authorities.

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