sebi:WTM/AN/ERO/ERO/24772/2022-23

SEBI · SEBI · 2015-08-14 · Ananth Narayan G., Whole Time Member

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Facts / Headnote

Directions issued against Balvir Singh as director of Alchemist Holdings Limited, including joint and several liability for refunds to investors, restraint from dealing in securities for 4 years from completion of refunds, and prohibition from associating with listed/public companies and SEBI-registered intermediaries for the same period.

Provisions invoked

• s. 19
• s. 73
• s. 11C
• s. 28A
• s. 67(3)
• s. 67
• s. 73(2)
• s. 73(1)
• s. 56(4)
• s. 60(5)
• s. 309
• s. 69(5)

Parties

• Balvir Singh

Holding

The Noticee, Balvir Singh, being an executive/whole-time director of AHL during the period of impugned RPS issuances (2006-2009), is held liable for violations of sections 56, 60, 69 and 73(2) of the Companies Act and is directed to jointly and severally refund monies to investors along with AHL and its other directors, with a 4-year restraint from securities dealing and association with public companies/intermediaries.

Full text

Order in respect of Balvir Singh Page 2 of 55 In the matter of Alchemist Holdings Limited 3. Thereafter, a final order was passed by WTM against AHL and its directors excluding the Noticee, amongst others, dated August 14, 2015 bearing reference no. WTM/PS/38/NRO/AUG/2015 (“2015 Final Order”), wherein it was held that AHL had failed to comply with section 67(3)(a) and (b) of the Companies Act. Accordingly, RPS issued by AHL was deemed as a public issue. The 2015 Final Order also found that consequently AHL had violated sections 56, 60, 69 and 73 of the Companies Act. In the said order, WTM had recorded that the Interim Order and hearing notices could not be served upon certain directors including the Noticee and that therefore, before proceeding further against the aforesaid persons, SEBI should take steps to complete service of the Interim Order.

Order in respect of Balvir Singh Page 3 of 55 In the matter of Alchemist Holdings Limited 49.8. Mr. Sukrit Sood, Ms. Ashima Sood and Mr. Balvir Singh are restrained and prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner, from the date of this Order, till the expiry of 4 (four) years from the date of completion of refunds to investors as directed above. Mr. Sukrit Sood, Ms. Ashima Sood and Mr. Balvir Singh are also restrained from associating himself with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI from the date of this Order till the expiry of 4 (four) years from the date of completion of refunds to investors.

Order in respect of Balvir Singh Page 4 of 55 In the matter of Alchemist Holdings Limited 7. We find that in the instant case no steps have been taken to serve the appellant under clause (a), (b) and (c) of Rule 7 of the Rules of 1995. Without taking steps under clause (a), (b) and (c), the respondent cannot directly take steps under clause (d) of Rule 7 of the Rules of 1995. Such procedure taken by the respondent is incorrect and cannot be sustained. We also find that the appellant had in their possession the correct address as is clear from the application filed by the respondent before the Patiala House Court, New Delhi….

Source: SecMarx — sebi:WTM/AN/ERO/ERO/24772/2022-23. 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.