Merlin Agri Projects India Ltd and its directors have  been banned by the Securities and Exchange Board of India from the capital markets for not complying with public issue norms.

According to a probe found by Sebi, the company had allotted redeemable preference shares worth about Rs 51 lakh to 56 persons between 2011 and 2013.

Since these securities had been issued to more than 50 investors, this qualified as a public issue, that requires compulsory listing on recognised stock exchanges. Among others, the firm was also required to file a prospectus, which it failed to do.

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