sebi:WTM/GM/SEBI/ERO/IMD/20/JUNE/2017

SEBI · SEBI · 2016-11-23 · G. Mahalingam, Whole Time Member

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Facts / Headnote

Interim directions issued restraining noticees from securities market with immediate effect and calling upon them to show cause why joint and several refund with interest and 4-year market restraint should not be imposed

Provisions invoked

Parties

Holding

SEBI prima facie held the offer and allotment of preference shares by JDGL to at least 676 persons was a public issue in breach of Sections 56, 60 and 73 of the Companies Act, 1956 and issued interim restraints with show-cause for joint and several refund with 15% interest.

Full text

Page 2 of 9 TABLE 1 Sr. No. Name of Entity/ Director Designation Letter Date Letter Status (Returned/ Delivered) 1 Jeevan Dhara Geomine Limited Company 23.08.2016 Undelivered with the comment “Addressee Left” 2 Tapash Paul Director 05.09.2016 Delivered. 3 Ajoy Kumar Sarkar Director 05.09.2016 Delivered. 4 Sarju Acharjee Director 05.09.2016 Delivered. 5 Rinku Deka Director 03.10.2016 Undelivered with the comment “Insufficient Postal Address”. 6 Manoj Kumar Jain Auditor 05.10.2016 Delivered.

Page 3 of 9 (x) Details of relevant board meeting: TABLE 3 Date of Board meeting Date of passing resolution Amount proposed to raise (Rs.) Type of issue 25.05.2009 30.01.2009 The subject matter of the resolution was to increase authorized capital from Rs. 50 lakh to Rs. 100 lakh by creation of 50,000 preference shares of Rs.100/- each. Further, it was resolved that the present unclassified authorized share capital be classified by allocating the existing 40,000 shares as redeemable preference shares and the balance shares as Equity Share capital.

Page 4 of 9 ISSUES FOR DETERMINATION 8. In the context of the details of the offer and allotment of preference shares mentioned in paragraph 6 above (hereinafter referred to as "the offer and allotment of preference shares"), the issue for determination in the instant matter is whether or not such mobilization of funds by JDGL is in accordance with the provisions of the Companies Act, 1956 read with the provisions of the SEBI Act,

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Source: SecMarx — sebi:WTM/GM/SEBI/ERO/IMD/20/JUNE/2017. 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.