sebi:WTM/MPB/EFD-1-DRA-IV/4/2018
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Facts / Headnote
Directions issued: joint and several refund of Rs. 1,94,92,000 with 15% per annum interest, market access ban for 4 years from completion of refund, asset inventory, escrow account, public notice, and recovery provisions.
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 Shreebhumi Constructions Limited
- Mr. Shubhranshu Singh
- Mr. Chhotrai Majhi
- Mr. Prabin Dash
Holding
SCL's offer of Redeemable Preference Shares to 241 allottees was a deemed public issue under the first proviso to Section 67(3) of the Companies Act, 1956, and SCL and its directors Shubhranshu Singh, Chhotrai Majhi, and Prabin Dash are jointly and severally liable to refund Rs. 1,94,92,000 with 15% per annum interest and are barred from accessing the securities market.
Full text
Order in the matter of M/s Shreebhumi Constructions Limited Page 2 of 23 3. On enquiry by SEBI, it was observed that SCL had made an offer of RPS in the financial years 2011-2012 and 2012-2013 (hereinafter referred to as “Offer of RPS”) and raised an amount of Rs. 1,94,92,000 from 241 allottees.
Order in the matter of M/s Shreebhumi Constructions Limited Page 3 of 23 resultant requirement under section 60 read with section 2(36), section 56, sections 73(1), 73(2) and 73(3) read with section 27(2) of the SEBI Act were not complied with by SCL in respect of the Offer of RPS.
Order in the matter of M/s Shreebhumi Constructions Limited Page 4 of 23 of two independent Chartered Accountants to the satisfaction of SEBI (to be submitted to SEBI within 7 days of completion of the refund); and ii. The Noticees to be refrained / prohibited from accessing the securities market by issue of prospectus / offer document / advertisement and buying, selling or otherwise dealing in securities in any manner whatsoever, directly or indirectly, till completion of the refund and for a period of four years from the date of completion of the refund as directed above.”
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/4/2018. 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.