sebi:WTM/MPB/EFD-1-DRA-IV/132/2018
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Facts / Headnote
Past directors directed jointly and severally to refund NCD proceeds with 15% p.a. interest, provide asset inventory, and restrained from securities market and associating with listed/public fundraising companies for 4 years from completion of refunds
Provisions invoked
- s. 19
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- 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)
- s. 56(4)
- s. 73(3)
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
- Shri Saikat Brahmachari
- Shri Tanmoy Kundu
- Shri Sadhan Chandra Brahmachari
Holding
MBK's offer of NCDs to 8,516 persons raising Rs. 9.06 Crores was a deemed public issue that violated public-issue norms, and past directors Shri Saikat Brahmachari, Shri Tanmoy Kundu and Shri Sadhan Chandra Brahmachari are jointly and severally liable to refund amounts collected during their directorship with 15% interest and are restrained from the securities market for 4 years after refunds.
Full text
Order in the matter of MBK Business Development (India) Limited Page 2 of 21 as “ILDS Regulations”). 3. On enquiry by SEBI, it was observed that MBK had made an offer of NCDs in the financial years 2010-2011, 2011-2012 and 2012-2013 (hereinafter referred to as “Offer of NCDs”) and raised an amount of Rs. 9.06 Crores from 4,518 allottees. The number of allottees and funds mobilized has been collated from the documents submitted by the Company.
Order in the matter of MBK Business Development (India) Limited Page 3 of 21 2010-2011, 2011-2012 and 2012-2013 and raised an amount of Rs. 9.06 Crores as shown below: Year of Issue Security Issued Amount raised (Rs.) (in Crores) Number of allottees 2010-2011 NCDs
Order in the matter of MBK Business Development (India) Limited Page 4 of 21 ii. The abovementioned past Directors of MBK are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions; iii. The abovementioned past Directors of MBK shall provide a full inventory of all their assets and properties.”
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/132/2018. 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.