sebi:WTM/AB/IMD-ERO/05/2020-21
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Facts / Headnote
Noticee No. 1 (Pradeep Kumar Behera) and Noticee No. 2 (Ravendra Kumar/Singh) prohibited from accessing/dealing in securities for 2 years; proceedings against Noticee No. 3 (Janak Bhagat) disposed of without any directions; no joint and several refund liability imposed on any Noticee.
Provisions invoked
- s. 19
- s. 12(1)
- s. 27
- s. 73
- s. 73(2)
- s. 291
- s. 73(1)
Parties
- Mr. Pradeep Kumar Behera
- Mr. Ravendra Singh
- Mr. Janak Bhagat
Holding
Mr. Pradeep Kumar Behera and Mr. Ravendra Kumar are prohibited from accessing the securities market and from buying, selling or otherwise dealing in securities for 2 years for failure to ensure compliance with the refund directions, while proceedings against Mr. Janak Bhagat are disposed of without directions and none of the Noticees are held personally liable to refund.
Full text
Final Order in the matter of Mass Infra Realty Ltd. Page 2 of 8 Companies Act, 1956. The Final Order also found that Debenture Trust Suraksha and Mass Debenture Trust, had violated Section 12(1) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”). For the aforesaid violations, the Final Order issued certain directions to MIRL, its directors and the debenture trustee, inter alia, restraining them from accessing the securities market and from buying, selling or dealing in securities, in any manner whatsoever. The Final Order also directed MIRL and its directors named therein to jointly and severally refund the money collected by way of issue of NCD’s to investors.
Final Order in the matter of Mass Infra Realty Ltd. Page 3 of 8 when the refunds became due to the investors till the date of repayment; b. directing them not to issue prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, for an appropriate period; c. directions restraining them from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period; d. directing them and other companies in which they are directors/promoters holding substantial or controlling interest, to not access the capital market for an appropriate period.”
Final Order in the matter of Mass Infra Realty Ltd. Page 4 of 8 after the issue is also liable in making refunds as mandated therein. As per section 291 of Companies Act, 1956, the board of directors of a company shall be entitled to exercise all such powers and do all such acts and things as the company is authorised to exercise and do. Therefore, the board of directors being responsible for the conduct of the business of a company will be held liable for any non-compliance of law and such liability is also on individual directors.
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Source: SecMarx — sebi:WTM/AB/IMD-ERO/05/2020-21. 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.