sebi:WTM/GM/EFD/51/2017-18
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticees directed jointly and severally to refund RPS money with 15% p.a. interest within 90 days, with securities market restraints till refund complete and for four years thereafter; recovery proceedings on default.
Provisions invoked
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 73(2)
- s. 73(1)
- s. 42(7)
Regulations
- Reg. 4(2)
Parties
- Midas Touch
- Soubhagya Kumar Samal
- Nirupama Samal/Thatoi
- Swarna Lata Samal
- Debasis Prasad Mishra
- Swetanshu Shekhar Samal
Holding
The offer and allotment of redeemable preference shares by Midas Touch to more than 49 persons was a deemed public issue in violation of the Companies Act and ICDR Regulations, and the company and its directors are jointly and severally liable to refund the money with 15% interest.
Full text
Page 2 of 7 (i) restrained from mobilizing funds through the issue of equity shares or through any other form of securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions; (ii) prohibited from issuing 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 or through other companies in which they are directors/promoters, till further directions; (iii) restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further directions; and (iv) prohibited from diverting any funds raised from public at large through the issuance of the impugned equity shares or redeemable preference shares, kept in its bank accounts and/or in the custody of the company without prior permission of SEBI until further orders. Midas Touch and its promoters / directors were further directed not to dispose of any of the properties or alienate the assets of the Company and to provide SEBI with a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares/securities, if held in physical form.
Page 3 of 7 the hearing nor submitted any reply or sought any extension. In view of the same, I am convinced that sufficient opportunities have been granted to the noticees and they are not keen to avail any opportunity of hearing in this regard. I further note that the noticees have not even filed any written reply/submission to the interim order cum-show cause notice. In view of these facts and circumstances, I deem it appropriate to decide the matter ex-parte on the basis of material available on record.
Page 4 of 7 Provided that nothing contained in this sub-section shall apply in a case where the offer or invitation to subscribe for shares or debentures is made to fifty persons or more: Provided further that nothing contained in the first proviso shall apply to non-banking financial companies or public financial institutions specified in section 4A of the Companies Act, 1956 (1 of 1956).”
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/GM/EFD/51/2017-18. 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.