sebi:WTM/MPB/EFD-1-DRA-IV/103/2017
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Facts / Headnote
Directions issued: joint and several refund of money collected through Offer of NCDs and RPS with interest at 15% p.a.; prohibition on issuing prospectus/offer documents/advertisements; restraint from accessing securities market and from associating with listed/public companies and SEBI-registered intermediaries for 4 years (for PPDAL and directors Saha, Singh, Chakraborty, 4 years from completion of refunds); asset freeze except for refunds into escrow account; public notice for refund modalities; debenture trustees restrained from securities market for 4 years; directions subject to Calcutta High Court order dated January 15, 2016.
Provisions invoked
- s. 19
- s. 12(1)
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 117B
- s. 56
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 67(1)
- s. 27(2)
- s. 56(1)
- s. 117C
- s. 56(3)
- s. 67(2)
Regulations
- Reg. 7
- Reg. 6
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 4(4)
- Reg. 2(e)
- Reg. 4(2)(a)
- Reg. 19
- Reg. 26
- Reg. 107
- Reg. 4(2)(b)
- Reg. 4(2)(d)
- Reg. 4(2)(c)
- Reg. 5(2)(b)
Parties
- M/s Pailan Park Development Authority Limited (PPDAL)
- Shri Sekhar Chandra Koley
- Shri Bipin Kumar Singh
- Shri Chandan Chakraborty
- Shri Avijit Chowdhury
- Shri Atul Agarwal
- Shri Vivek Kumar
- Shri Apurba Kumar Saha
- Shri Dilip Kumar Das
- Shri Laxmi Narayan Sharma
Holding
PPDAL's offers of NCDs and RPS were deemed public issues under the first proviso to Section 67(3) of the Companies Act, 1956, and PPDAL and its directors violated Sections 56, 60, 73, 117B, 117C of the Companies Act, 1956 and the ILDS Regulations; the debenture trustees violated Section 12(1) of the SEBI Act read with Regulation 7 of the Debenture Trustees Regulations. Directions for refund with 15% interest, market access bans, and asset restraints were issued.
Full text
Order in the matter of M/s Pailan Park Development Authority Limited Page 2 of 35 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 the Securities and Exchange Board of India (Issue and Listing of Debt Securities), Regulations, 2008 (hereinafter referred to as “ILDS Regulations”).
Order in the matter of M/s Pailan Park Development Authority Limited Page 3 of 35 6. Prima facie findings/allegations: In the said interim order, the following prima facie
Order in the matter of M/s Pailan Park Development Authority Limited Page 4 of 35 2011 and appointed Shri Laxmi Narayan Sharma as Debenture Trustee for the Offer of NCDs by that company.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/103/2017. 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.