sebi:WTM/MPB/EFD-1-DRA-III/152/2018
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Facts / Headnote
Directions issued: IDAL to wind up CIS and refund investors within 3 months; directors jointly/severally liable for refund if company fails; debarment from securities market for 6 years post-refund; restraint from holding director/KMP positions in listed companies for 6 years; no directions against Shri Dashrath Singh Panwar and Shri Rajesh Panchal (benefit of doubt).
Provisions invoked
- s. 11B
- s. 11A
- s. 19
- s. 12
- s. 45
- s. 58A
- s. 620A
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)
- Reg. 4(2)(t)
- Reg. 65(c)
- Reg. 65(d)
Parties
- M/s IPN Developers & Allied Limited (IDAL)
- Shri Nageshwar Panchal
- Shri Dilip Devda
- Shri Shankar Lal Yadav
- Shri Hari Singh
- Shri Dashrath Singh Panwar
- Shri Rajesh Panchal
Holding
IDAL's schemes for purchase/sale and development of land were held to be a Collective Investment Scheme under Section 11AA of the SEBI Act, and IDAL and its directors were found to have violated Section 12(1B) of the SEBI Act, Regulation 3 of the CIS Regulations, and Regulation 4(2)(t) of the FUTP Regulations, 2003. Directions were issued for winding up, refund, debarment from securities market, and prohibition on holding director positions.
Full text
Order in the matter of M/s IPN Developers & Allied Limited Page 2 of 26 3. On enquiry, SEBI prima facie found that IDAL is engaged in fund mobilizing activities from the public, which is in the nature of a Collective Investment Scheme. Therefore, SEBI, vide an interim ex-parte Order dated June 22, 2015 (hereinafter referred to as “interim order”) passed the directions against IDAL and its Directors, viz. Shri Nageshwar Panchal, Shri Dilip Devda, Shri Shankar Lal Yadav, Shri Hari Singh, Shri Dashrath Singh Panwar and Shri Rajesh Panchal (hereinafter collectively referred to as ‘Noticees’).
Order in the matter of M/s IPN Developers & Allied Limited Page 3 of 26 a. not to collect any fresh moneys from investors from its existing scheme;
Order in the matter of M/s IPN Developers & Allied Limited Page 4 of 26 interest and for winding up of such plans/schemes in terms of Regulations 65 and 73 of the CIS Regulations, should not be issued against them.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-III/152/2018. 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.