sebi:WTM/MPB/EFD-1-DRA-III/11/2018
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Facts / Headnote
Directions issued to Paramount to repay balance amounts with peer-reviewed Chartered Accountant certification, issue public notice and deposit amount in escrow; Paramount and four directors restrained from securities market till 5 years from full repayment; proceedings abated for three deceased individuals; adjudication/recovery warned for non-compliance.
Provisions invoked
- s. 11B
- s. 11A
- s. 11
- s. 11(4)
- s. 19
- s. 11(1)
- s. 11(2)
- s. 28A
Regulations
- Reg. 65
- Reg. 73(9)
Parties
- Paramount Biotech Industries Limited
- Mr. Girish Chandra Gupta
- Ms. Pushpa Gupta
- Ms. Bhawani Srivastava
- Major General Baldev Raj Varma (Retd.)
- Ms. Meena Gupta
- Ms. Mamta Sinha
- Mr. Satyendra Mohan Chandra
Holding
Paramount Biotech Industries Limited failed to comply with SEBI Order dated January 28, 2005 to refund CIS money with returns and its schemes were not wound up; Paramount was directed to repay the balance with independent certification, escrow and public notice, and Paramount with Mr. Girish Chandra Gupta, Ms. Pushpa Gupta, Ms. Bhawani Srivastava and Major General Baldev Raj Varma were restrained from the securities market till 5 years from full repayment.
Full text
Order in the matter of Paramount Biotech Industries Limited Page 2 of 22 Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as “the CIS Regulations”), directions were issued to Paramount to refund the money collected under the schemes of the Company along with returns due to the investors as per the terms of the offer, within a period of one month from the date of the order.
Order in the matter of Paramount Biotech Industries Limited Page 3 of 22 Company may be allowed to deposit the amount of Rs. 4 lakh with SEBI such that the same may be disbursed by SEBI to the investors, as and when they become available. Hon’ble SAT vide order dated April 28, 2006 dismissed the said request stating that SEBI has no provisions to maintain such funds and directed the Company to deposit the total amount due to the unclaimed investors, in a nationalized Bank and the said amount would be withdrawn only for the purpose of making payment to them, under the intimation of SEBI. Paramount was also directed to furnish a six-monthly audit statement prepared by their auditors to SEBI as long as the amount remained deposited with the Bank.
Order in the matter of Paramount Biotech Industries Limited Page 4 of 22 10. SEBI vide letter dated February 20, 2007 advised Paramount to cooperate with the auditors and to make necessary arrangements for provision of information by March 1, 2007. Further, the Company was informed, inter alia, that no information was available regarding any request for a hearing before the Chairman, SEBI and that the audit proceedings were independent in nature and would not affect any concurrent submissions which the Company would choose to make before the Chairman.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-III/11/2018. 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.