sebi:WTM/MPB/EFD-1-DRA-3/43/2019
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Facts / Headnote
Directions issued: refund of Rs. 30,00,000 with 15% interest, asset inventory, escrow account, public notice, debarment from securities market, and restraint from associating with listed/public companies.
Provisions invoked
- s. 19
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 56(3)
- s. 56(4)
- s. 73(3)
Regulations
- Reg. 47
- Reg. 7
- Reg. 107
- Reg. 57
- Reg. 25
- Reg. 6
- Reg. 4(2)
- Reg. 36
- Reg. 46
- Reg. 5
Parties
- M/s Prayas Projects India Limited
- Shri Kaizar Biswas
- Shri Mohammed Jiaur Rahaman
- Shri Ajijur Rahaman
- Shri Abu Sama Molla
- Shri Ashraful Hoque
- Shri Sariful Islam
Holding
PPIL's offer of Equity Shares to 70 allottees in FY 2012-2013 was a deemed public issue under the first proviso to Section 67(3) of the Companies Act, 1956, and PPIL and its directors at the time of issuance violated Sections 56, 60 and 73 of that Act. PPIL and directors Shri Ajijur Rahaman, Shri Kaizar Biswas and Shri Mohammed Jiaur Rahaman are jointly and severally liable to refund Rs. 30 Lakh with 15% interest, and all Noticees are debarred for appropriate periods.
Full text
Order in the matter of M/s Prayas Projects India Limited Page 2 of 22 PPIL in respect of non-payment of maturities of the schemes/policies/plans and shares/debentures/bonds issued by the Company. In this regard, SEBI undertook an enquiry to ascertain whether PPIL had made any public issue of securities without complying with the provisions of the Companies Act, 1956; Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) and the Rules and Regulations framed thereunder read with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as "ICDR Regulations").
Order in the matter of M/s Prayas Projects India Limited Page 3 of 22 amount of Rs. 30.00 Lakh as shown below: Year of Issue Security Issued Amount raised (Rs.) (in lakh) Number of allottees 2012-2013 Equity Shares 30,00,000.00
Order in the matter of M/s Prayas Projects India Limited Page 4 of 22 were also delivered and Shri Kaizar Biswas replied vide letter dated January 09, 2018 in his capacity as a director for and on behalf of the Company. For the remaining Noticees viz., Shri Mohammed Jiaur Rahaman, Shri Abu Sama Molla and Shri Ashraful Hoque SEBI, vide notifications each dated November 06, 2018 published in newspapers viz., ‘The Statesman’, ‘Bartaman’ and ‘The Sanmarg’, it was notified that SCN dated November 29, 2017 was issued against them and they were given 21 days to submit their reply in the matter.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-3/43/2019. 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.