sebi:WTM/MPB/EFD-1-DRA-IV/07/2018

SEBI · SEBI · 2016-03-03 · Madhabi Puri Buch, Whole Time Member

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Facts / Headnote

Mr. Ram Kumar Sinha restrained from accessing the securities market and associating with listed/public companies for 4 years; earlier findings in the Order dated February 24, 2016 modified to hold him not liable for refund of money collected during a period when he was not a director.

Provisions invoked

• s. 19
• s. 11(1)
• s. 73
• s. 73(2)
• s. 56(1)

Parties

• Mr. Ram Kumar Sinha

Holding

Mr. Ram Kumar Sinha is restrained from accessing the securities market, buying, selling or otherwise dealing in securities, and from associating with listed public companies, public companies raising money from the public, or SEBI-registered intermediaries for a period of 4 years. The earlier findings in the Order dated February 24, 2016 are modified to hold that the Noticee is not liable for refund of money as he was not a director during the relevant period of fund mobilization.

Full text

Order in respect of Mr. Ram Kumar Sinha in the matter of M/s Vikdas Industries Limited Page 2 of 8 were issued against Mr. Ram Kumar Sinha and other entities: “The Company, Vikdas Industries Limited [PAN: AADCV5860F], Mr. Indranil Sinha [PAN: ATIPS7061A], Mr. Debasish Das [PAN: AGWPD4747K], Mr. Sandip Paul [PAN: BBAPP0971P], Mr. Goutam Chatterjee [PAN: ADWPC8320Q], Mr. Ramen Chatterjee [PAN: ACTPC0530E], Mr. Sachin Kumar Thakur [PAN: AJUPT3341C], Mr. Jadunath Jena [PAN: ANUPJ8465D], Mr. Bhabagrahi Behera [PAN: ASWPB3847N] and Mr. Ram Kumar Sinha [DIN: 02460975] jointly and severally, shall forthwith refund the money collected by the Company through the issuance of Secured Non-Convertible Redeemable Debentures (which have been found to be issued in contravention of the public issue norms stipulated under the Companies Act, 1956), to the investors including the money collected from investors, till date, pending allotment of NCD, if any, with an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due (in terms of Section 73(2) of the Companies Act, 1956) to the investors till the date of actual payment.” ….. In case of failure of Vikdas Industries Limited, Mr. Indranil Sinha, Mr. Debasish Das, Mr. Sandip Paul, Mr. Goutam Chatterjee, Mr. Ramen Chatterjee, Mr. Sachin Kumar Thakur, Mr. Jadunath Jena, Mr. Bhabagrahi Behera and Mr. Ram Kumar Sinha to comply with the aforesaid directions SEBI, on the expiry of the three months period

Order in respect of Mr. Ram Kumar Sinha in the matter of M/s Vikdas Industries Limited Page 3 of 8 December 19, 2017 under Section 11(1), 11(4) and 11B of SEBI Act, 1992 to the Noticee, asking him to show cause as to why appropriate directions including the directions restraining the Noticee from accessing the securities market and prohibiting him from buying, selling or otherwise dealing in securities for an appropriate period, under Section 11(1), 11(4) and 11B of SEBI Act, 1992 should not be issued against him, for non- compliance of directions contained in the Order dated February 24, 2016.

Order in respect of Mr. Ram Kumar Sinha in the matter of M/s Vikdas Industries Limited Page 4 of 8  Whether the Noticee is liable to be debarred as envisaged in the Show Cause Notice dated December 19, 2017

Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/07/2018. 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.