sebi:WTM/MPB/EFD-1-DRA-IV/167/2018
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Facts / Headnote
Held offer of Redeemable Preference Shares to be deemed public issue in violation of Companies Act, 1956; directed SIML and its three directors to jointly and severally refund Rs. 58,10,300 with 15% p.a. interest and restrained them from securities market for 4 years from completion of refund, with sequential recovery and conditional effectiveness against Nibedita Nath.
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. 56(3)
- s. 67(2)
- s. 56(4)
- s. 73(3)
Regulations
- Reg. 107
Parties
- M/s Sanket Investments and Marketing Ltd.
- Prashanta Kumar Dash
- Pravat Kumar Dash
- Nibedita Nath
Holding
SIML's 2011-2012 offer of RPS to 698 allottees raising Rs. 58,10,300 was a deemed public issue violating sections 56, 60 and 73 of Companies Act, 1956; SIML and directors Prashanta Kumar Dash, Pravat Kumar Dash and Nibedita Nath are jointly and severally liable to refund with 15% interest and are restrained from securities market for 4 years from completion of refund.
Full text
Order in the matter of M/s Sanket Investments and Marketing Ltd. Page 2 of 26 1956; Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) and the Rules and Regulations framed thereunder
Order in the matter of M/s Sanket Investments and Marketing Ltd. Page 3 of 26 (i) Sanket and the abovenamed Directors shall not access the securities market or buy, sell or otherwise deal in the securities market, either directly or indirectly, or associate themselves with any listed company or company intending to raise money from the public; (ii) Sanket and the abovenamed Directors shall neither dispose of, alienate or encumber any of its/their assets nor divert any funds raised from public through the offer and allotment of preference shares; (iii) Sanket and the abovenamed Directors shall co-operate with SEBI and shall furnish all information/documents in connection with the offer and allotment of preference shares sought vide letter dated March 01, 2016;
Order in the matter of M/s Sanket Investments and Marketing Ltd. Page 4 of 26 securities in any manner whatsoever, directly or indirectly, for a period of four years from the date of effecting the refund as directed above.
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/167/2018. 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.