sebi:WTM/MPB/EFD-1-DRA-IV/141/2018
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Facts / Headnote
Directions issued against Shri Arup Kumar De: refund obligations jointly and severally with SFL (limited to his tenure), 4-year market access ban, 4-year association ban, asset inventory, escrow account, public notice, and compliance report.
Provisions invoked
- s. 19
- s. 27
- s. 55A
- s. 73
- 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. 56(3)
- s. 67(2)
- s. 56(4)
- s. 73(3)
Regulations
- Reg. 107
Parties
- Shri Arup Kumar De
Holding
SEBI held that SFL's Offer of RPS was a deemed public issue under the first proviso to Section 67(3) of the Companies Act, 1956, violating Sections 56, 60, and 73, and that Shri Arup Kumar De, though not liable for refund of amounts collected before his directorship, was liable for failure to ensure refunds and was restrained from the securities market for 4 years.
Full text
Order in the matter of M/s Sunplant Forgings Ltd. Page 2 of 16 funds mobilized has been collated from the documents submitted by SFL to SEBI. Therefore, it was concluded that the actual number of allottees and amount mobilized could be more than the above indicated figures.
Order in the matter of M/s Sunplant Forgings Ltd. Page 3 of 16 8. Accordingly, SEBI issued Show cause notice dated February 14, 2017 (hereinafter referred to as “SCN”) against Shri Arup Kumar De (hereinafter referred to as “Noticee”) for the alleged violation of aforementioned provisions of the Companies Act, 1956, the SEBI Act and the Rules and Regulations framed thereunder. Since the present SCN emanates from interim
Order in the matter of M/s Sunplant Forgings Ltd. Page 4 of 16 all the repayments are made. Such liability is a joint and several liability on them. Therefore, the director who join (irrespective of whether they continue or resign) after the issue is also liable in making refunds as mandated therein”
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/141/2018. 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.