sebi:WTM/MPB/EFD-1-DRA-III/112/2017

SEBI · SEBI · 2015-09-29 · Madhabi Puri Buch, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Deemed public issue found; company and directors/promoters directed to refund with 15% interest with restraint on market access, alienation and issuance of offer documents, and recovery under section 28A on default

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. 73(1)
• s. 2(36)
• s. 60
• s. 27(2)
• s. 56(1)
• s. 56(3)
• s. 67(2)
• s. 56(4)
• s. 73(3)

Regulations

• Reg. 7
• Reg. 107
• Reg. 57
• Reg. 25
• Reg. 6
• Reg. 111
• Reg. 59
• Reg. 111(1)
• Reg. 111(2)
• Reg. 36
• Reg. 46
• Reg. 63
• Reg. 4(2)(d)
• Reg. 47
• Reg. 5

Holding

BNP's issuance of Redeemable Preference Shares to 2993 investors raising Rs.9.85 crores and equity shares to 178 persons raising Rs.10,91,510 was a deemed public issue in violation of sections 56, 60 and 73 of Companies Act, 1956 and DIP Guidelines/ICDR Regulations, and BNP with its directors/promoters must refund with 15% interest subject to market-access and asset restraints.

Full text

Order in the matter of BNP Real Estate and Allied Limited Page 2 of 35 Shares and undertook an enquiry to ascertain whether BNP 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 Including SEBI (Disclosure and Investor Protection) Guidelines, 2000 (hereinafter referred to as " DIP Guidelines") read with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as "ICDR Regulations")

Order in the matter of BNP Real Estate and Allied Limited Page 3 of 35 Year of allotment Number of allottees Number of preference shares Amount (Rs.) As per Company As per Form 2 2008-09 29 29 3,52,600 35,26,000 2009-10 252 252 4,55,946 45,59,460 2011-12 1,806* 1,806 45,46,000 4,54,60,000 2012-13 12 12 25,00,000 2,50,00,000 2013-14 896 894 20,00,000 2,00,00,000

Order in the matter of BNP Real Estate and Allied Limited Page 4 of 35 08/12/2011 91,200 9,12,000 49 49 09/12/2011 64,200 6,42,000 49 49 10/12/2011 70,500 7,05,000 45 45 11/12/2011 70,500 7,05,000 46 46 12/12/2011 66,000 6,60,000 45 45 13/12/2011 63,750 6,37,500 44 44 14/12/2011 69,250 6,92,500 47 47 15/12/2011 61,450 6,14,500 44 44 16/12/2011 56,350 5,63,500 27 27 17/12/2011 70,400 7,04,000 46 46 21/12/2011 1,27,500 12,75,000 49 49 22/12/2011 1,46,300 14,63,000 49 49 23/12/2011 1,42,300 14,23,000 49 49 24/12/2011 1,07,500 10,75,000 49 49 25/12/2011 1,39,000 13,90,000 48 48 26/12/2011 1,50,000 15,00,000 48 48 27/12/2011 1,28,000 12,80,000 49 49 28/12/2011 1,38,000 13,80,000 49 49 29/12/2011 1,33,500 13,35,000 49 49 02/1/2012 1,16,350 11,63,500 49 49 03/1/2012 1,51,000 15,10,000 49 49 04/1/2012 1,40,200 14,02,000 49 49 05/1/2012 57,250 5,72,500 25 25 06/1/2012 6,93,000 69,30,000 44 44 07/1/2012 1,59,000 15,90,000 48 48 08/1/2012 1,44,000 14,40,000 41 41 2013-14

Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-III/112/2017. 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.