sebi:WTM/AB/DDHS/ERO/13/2019-20
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Facts / Headnote
Interim directions restraining Noticee No.1, 2, 3, 5, 6, 7, 8, 9 and 12 from mobilizing funds, accessing securities market and alienating assets, with show-cause for joint and several refund with 15% interest within 90 days and 4-year market debarment on completion of refund.
Provisions invoked
- s. 11B
- s. 11A
- s. 11
- s. 62
- s. 55A
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 73(2)
- s. 73(1)
- s. 60
- s. 73(3)
Parties
- Orion Industries Ltd.
- Md Mahfuz Alam
- Parwez Alam
- Panchanan Kisku
- Md Kamal Koshar
- Mohammad Salimuddin Ansari
- Manzur Alam
- Punam Bharati
- Mohammed Afaque Ahmad
- Shahid Jama
- Mohammad Jenul Ansari
- Santanu Sen Choudhury
Holding
SEBI prima facie held the Company's offer and allotment of Redeemable Preference Shares to 319 persons in FY 2011-12 and 3872 persons in FY 2012-13 was a deemed public issue in violation of Sections 56, 60, 73(1) and 73(2) of the Companies Act, 1956, and restrained the Company and connected Noticees while calling upon them to show cause why refund with 15% interest and market restraint should not be imposed.
Full text
Interim Order in the matter of Orion Industries Limited Page 2 of 15 Background: 1. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) received a complaint on December 06, 2018 from one Ms. Shahjahan Begam (hereinafter referred to as “Complainant”) alleging money mobilization by Orion Industries Limited (hereinafter referred to as “OIL/ the Company”). The Complainant had also enclosed copies of two certificates of Redeemable Preference Share (hereinafter referred to as “RPS”) and, therefore, the matter was taken up for examination as to whether the provisions of the Securities and Exchange Board of India Act, 1992 (hereinafter “SEBI Act, 1992”) read with the relevant provisions of Companies Act, 1956 were complied with or not in the alleged issuance of RPS by the Company.
Interim Order in the matter of Orion Industries Limited Page 3 of 15 3 Panchanan Kisku Director and Promoter 03275553 NA 15/12/2010 07/03/2011 4 Md Kamal Koshar Director and Promoter 03422498 BBAPK4611F 07/03/2011 - 5 Mohammad Salimuddin Ansari Director and Promoter 03422472 ALLPA8121E 07/03/2011 - Directors 6 Manzur Alam Director and Promoter 03504056 ANFPA9734M 18/04/2011 - 7 Punam Bharati Director 02685056 NA 07/03/2011 16/05/2014 8 Mohammed Afaque Ahmad Director 05110815 NA 11/11/2011 21/09/2013 9 Shahid Jama Director 07183857 NA 18/05/2015 - 10 Mohammad Jenul Ansari Director 07183890 NA 18/05/2015 - Promoters 11 Santanu Sen Choudhury Promoter NA AGVPC5307K - -
Interim Order in the matter of Orion Industries Limited Page 4 of 15 a. Equity Capital: Rs. 7,30,000/- b. Preference Capital: Rs. 5,46,08,000/-
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Source: SecMarx — sebi:WTM/AB/DDHS/ERO/13/2019-20. 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.