sebi:QJA/GR/NRO/NRO/30066/2023-24
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Provisions invoked
- s. 19
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 58
- s. 56
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 67(1)
- s. 56(1)
- s. 56(3)
- s. 149
- s. 67(2)
- s. 465(2)
- s. 73(3)
Regulations
- Reg. 16
- Reg. 201
- Reg. 16(1)
Holding
The Noticees, including BIL and its directors, were found to have violated Sections 67(1), (2), (3), 56, 60 r/w 2(36), 69, 73 of the Companies Act, 1956 and Regulation 16(1) of the NCRPS Regulations, 2013 by making offers of Redeemable Preference Shares to the public without complying with public issue and listing requirements. Directions were issued under Section 19 of the SEBI Act, 1992 read with Sections 11(1), 11(4), 11A and 11B.
Full text
Order in the matter of Basil International Limited Page 2 of 29 And Listing of Non-Convertible Redeemable Preference Shares) Regulations. 2013 (hereinafter referred to as “NCRPS Regulations, 2013”).
Order in the matter of Basil International Limited Page 3 of 29 3. As the above said Offer of RPS was prima facie found to be in violation of provisions of the SEBI Act, 1992 and the Companies Act, 1956, SEBI passed an interim order dated May 16, 2013 (hereinafter referred to as "interim order") and issued directions mentioned therein against BIL and its directors and promoters for engaging in the business of taking deposits under the garb of redeemable preference shares from rural people promising them returns and utilizing such proceeds in paying huge commission to its agents, investing in its business assets, fixed deposits and siphoning off the funds as cash. Hence, SEBI vide the said order, had directed them not to collect any money from investors and also restrained BIL from viz. (i) disposing off its properties and assets without prior permission of SEBI and (ii) diverting the funds raised from public at large kept in its bank account and/or kept in its custody.
Order in the matter of Basil International Limited Page 4 of 29 6. While passing the aforesaid final order dated February 6, 2015, WTM SEBI inter-alia directed to examine the roles of former directors namely, Mr. Shantanu Chakraborty, Mr. Pintu Roy and others, if any, in the matter and advised to take appropriate action against them, if warranted.
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Source: SecMarx — sebi:QJA/GR/NRO/NRO/30066/2023-24. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.