ASIC has obtained an interim stop order on the offer information statement (OIS) lodged by Rural & General Insurance in December. No offers, issues, sales or transfers of the securities may be made by R&G while the order is in place.

R&G wants to raise $5 million by offering shares to its existing insurance clients at 50 cents a share. An ASIC statement said the document “stated that R&G intends to subscribe to the share listing and trading services of an exempt stock market. But there is no application before ASIC on behalf of R&G for approval of an exempt stock market.”

Additionally, it will not be possible to establish an exempt stock market after the March 11 commencement of the FSR Act. ASIC’s Corporate Finance Director Richard Cockburn said inaccurate disclosure in an OIS about listing “has great potential to mislead investors”.

R&G CEO Charles Pratten said the company was given just 29 minutes to seek legal advice before ASIC made the order late last week. The company intends to make a public statement on the issue.