sebi:WTM/MPB/EFD-1-DRA-3/165/2018
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Facts / Headnote
Show Cause Notice disposed of; directions issued against Mr. Mahavir Singh including joint and several liability for winding up schemes and refund, market restraint, and debarment from directorship
Provisions invoked
- s. 11B
- s. 11A
- s. 11
- s. 19
- s. 12
- s. 45
- s. 58A
- s. 620A
Regulations
- Reg. 65
- Reg. 3
- Reg. 65(c)
- Reg. 65(d)
Parties
- Mr. Mahavir Singh
Holding
The Noticee, Mr. Mahavir Singh, being an additional director of KIL during the period of fund mobilization through an unregistered Collective Investment Scheme, is jointly and severally liable with KIL and its other directors to wind up the schemes and refund monies to investors, and is restrained from the securities market and from holding directorship positions.
Full text
Order in the matter of KEN Infratech Limited Page 2 of 17 ‘SEBI Act’) without obtaining a certificate of registration from SEBI for operating CIS as required under Section 12(1B) of the SEBI Act read with Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as ‘CIS Regulations’). In view of this, SEBI passed an Order dated December 17, 2014 (“Final
Order in the matter of KEN Infratech Limited Page 3 of 17 e. In the event of failure by KEN Infratech Limited and its directors namely Mr. Sukhwinder Singh, Mr. Sukhchain Singh and Mr. Kuldeep Singh to comply with the above directions, the following actions shall follow: - KEN Infratech Limited and its directors namely Mr. Sukhwinder Singh, Mr. Sukhchain Singh and Mr. Kuldeep Singh shall immediately (on expiry of the three months period available for making refunds) be restrained from accessing the securities market and would further be prohibited from buying, selling or otherwise dealing in securities market till all the Collective Investment Schemes of KEN Infratech Limited are wound up and all the monies mobilized through such schemes are refunded to its investors with returns which are due to them. - SEBI would make a reference to the State Government/ Local Police to register a civil/ criminal case against KEN Infratech Limited, its promoters, directors and its managers/ persons in-charge of the business and its schemes, for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds; and - SEBI would make a reference to the Ministry of Corporate Affairs, to initiate the process of winding up of the company, KEN Infratech Limited. - SEBI shall also initiate attachment and recovery proceedings under the SEBI Act and rules and regulations framed thereunder. f. Without prejudice to the above, KEN Infratech Limited and its directors namely Mr.
Order in the matter of KEN Infratech Limited Page 4 of 17 dated June 08, 2015 to Mr. Mahavir Singh (“the Noticee”), asking him to show cause as to why appropriate direction under Section 11 and 11B of the SEBI Act read with Regulations 65 of the CIS Regulations, should not be issued against it for the violations of KIL.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-3/165/2018. 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.