sebi:WTM/GM/CFD/68/2017-18
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Facts / Headnote
Interim directions issued restraining noticees from accessing securities market; show cause notice issued requiring joint and several refund of money raised with 15% interest
Provisions invoked
- s. 62
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 73(2)
- s. 73(1)
- s. 60
Holding
SEBI found prima facie that Grassroot's offer and allotment of equity shares to more than 49 persons constituted a public issue under Section 67(3) of the Companies Act, 1956, and that the company was in breach of Sections 73, 56 and 60 of the Companies Act, 1956 and various clauses of the SEBI (DIP) Guidelines, 2000. Interim directions were issued restraining the company and its promoters/directors from accessing the securities market and requiring them to show cause against refund of money raised with interest.
Full text
______________________________________________________________________________ Order in the matter of Grass Root Finance & Investment Company (India) Limited Page 2 of 14
______________________________________________________________________________ Order in the matter of Grass Root Finance & Investment Company (India) Limited Page 3 of 14
______________________________________________________________________________ Order in the matter of Grass Root Finance & Investment Company (India) Limited Page 4 of 14
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Source: SecMarx — sebi:WTM/GM/CFD/68/2017-18. 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.