Micro Finance Limited, a company based in Odisha had raised over Rs. 88 crores through the issuance of cumulative convertible preference shares (CCPS) to more than 1.21 lakh investors from 2005-06 to 2012-13.
Securities and Exchange Board of India directs Micro Finance’s former directors and promoters to refund investors’ money that the company had raised illegally. Further, the company has been barred from accessing the securities market for four years from the date of completion of refunds.
Since the company failed to repay its investors, the Directorate of Enforcement (ED) issued an order to attach companies’ movable and immovable properties to recover dues. Individuals who have invested their money in Micro Finance Ltd. and looking for information can register a complaint by visiting SEBI offices or through the online SEBI portal.
The matter of Micro Finance Limited and others have been still under investigation. Further information regarding the auction of companies’ assets and properties and the refund process will be made available soon to the public.