sebi:WTM/MPB/EFD-1-DRA-IV/10692/2021
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Facts / Headnote
Directions issued against Shri Akmal Sekh including joint and several refund liability with 15% interest, asset inventory, market restraint for 4 years from completion of refunds, and association bar with listed/public companies and SEBI-registered intermediaries.
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. 67(2)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 73(1)
- s. 56(3)
- s. 56(4)
- s. 73(3)
Regulations
- Reg. 107
Parties
- Akmal Sekh
Holding
Shri Akmal Sekh, as a Director of Falkon Industries India Limited during the financial year 2009-10 when a deemed public issue of Redeemable Preference Shares was made, is an 'officer in default' under Section 5(g) of the Companies Act, 1956 and is jointly and severally liable with Falkon and its other Directors to refund the money collected during his tenure with interest at 15% per annum under Section 73(2) of the Companies Act, 1956.
Full text
Order in the matter of Falkon Industries India Limited Page 1 of 20 WTM/MPB/EFD-1-DRA-IV/10692/2021 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of Falkon Industries India Limited Page 2 of 20 2.2. Falkon had made an offer of Redeemable Preference Shares during the financial year 2009-10 (hereinafter referred to as “Offer of RPS”) and raised at least an amount of Rs. 48.58 lakh from at least 714 allottees. The number of allottees and funds mobilized has been collated from documents obtained from MCA 21 portal i.e. FORM 2 (Return of allotment). 2.3. The above said Offer of RPS was found to be a deemed public issue of securities under the first proviso to Section 67(3) of the Companies Act, 1956. Accordingly, it was held that the resultant requirement under Section 60, Section 56(1) and 56(3), Sections 73(1), (2) and (3) of the Companies Act, 1956 were not complied with by Falkon and its Directors viz. Shri Manirul Islam, Shri Indraj Singh Jat, Shri Afzal Miah, Shri Biswajit Bhattacharya, Shri Dilwar Hossain, Shri Taslim Ansary, Shri Laxmanbhai Sitarambhai Bhoya, Shri Manglubhai Chilyabhai Dhum and Shri Budhan Chandra Kundu. 2.4. In view of the violations committed by Falkon and its aforementioned Directors, to safeguard the interest of the investors who had subscribed to such preference shares issued by Falkon and to further ensure orderly development of securities market, appropriate directions were issued against Falkon and its aforementioned Directors at paragraph 10.1 of the Final Order including a direction to refund the money collected by Falkon through the issuance of RPS, including the money
Order in the matter of Falkon Industries India Limited Page 3 of 20 4. Prima facie findings/allegations: In the said interim order, the following prima facie
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/10692/2021. 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.