Securities and Exchange Board of India (SEBI)Bars 8 companies from accessing the capital market for the next five years for violating listing agreement.Friday Oct 21,2016

The Securities and Exchange Board of India (SEBI) on Friday Oct 21,2016 barred as many as eight “vanishing” companies and 40 directors from accessing the capital market for the next five years for violating listing agreement.

Vanishing Companies are those that failed to file statutory returns with the Registrar of Companies(ROC)and stock exchanges for two years. Besides, the companies and their directors are not traceable.

The companies are -

1. Marine Cargo Company
2. Ambuja Zinc
3. Hitesh Textile Mills
4. Manav Pharma
5. Sequel Soft India
6. Shree Yaax Pharma & Cosmetics
7. Rusoday & Company and 
8. Sterling Kalks and Bricks 

have been barred from the capital markets. Apart from this, 40 directors have been prohibited from the capital markets.

The directors of Rusoday & Company have resigned from its board two decade ago, while Sterling Kalks and Bricks' directors were exonerated from the charges in 2004.

In an order passed on Friday Oct 21,2016,SEBI directed “the companies and their directors...to disassociate themselves in every respect from the capital market related activities”.

They have been directed not to “raise funds from the capital market, not to deal in securities and not to be or be associated with any of the intermediaries in the capital market, in whatsoever manner, for a period of five years from the date of this order”.