sebi:WTM/MPB/EFD-1-DRA-IV/41/2018
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Facts / Headnote
VAIL and its directors found liable for violations; directed to refund monies collected with interest to investors; restrained from accessing securities market for 4 years from completion of refunds; Vaastav Debenture Trust and Shri Chinmoy Ghatak restrained from securities market for 4 years; order forwarded to stock exchanges, depositories, MCA/ROC, and local police.
Provisions invoked
- s. 19
- s. 12(1)
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 117B
- 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)
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
- M/s Vaastav ALR International Limited (VAIL)
- Shri Dibyendu Sekhar Maity
- Shri Shilajit Ghosh
- Shri Dilip Jana
- Shri Bappaditya Mukherjee
- Shri Atish Samanta Ray
- Shri Netai Pramanik
- Shri Anup Kumar Maiti
- Vaastav Debenture Trust
- Shri Chinmoy Ghatak
Holding
VAIL's offer of NCDs to at least 268 investors was a public issue under the first proviso to Section 67(3) of the Companies Act, 1956, and VAIL and its directors violated Sections 56, 60 read with 2(36), 73(1)-(3), 117C of the Companies Act, 1956 and the ILDS Regulations. Vaastav Debenture Trust and Shri Chinmoy Ghatak violated Section 117B of the Companies Act, 1956 and Section 12(1) of the SEBI Act read with Regulation 7 of the Debenture Trustees Regulations by acting as debenture trustee without registration.
Full text
Order in the matter of M/s Vaastav ALR International Limited Page 2 of 40 2. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) received a complaint against VAIL in respect of issue of Secured Redeemable Non-Convertible Debentures (hereinafter referred to as “NCDs”) and undertook an enquiry to ascertain whether VAIL had made any public issue of securities without complying with the provisions of the Companies Act, 1956; Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) and the Rules and Regulations framed thereunder including the Securities and Exchange Board of India (Issue and Listing of Debt Securities), Regulations, 2008 (hereinafter referred to as “ILDS Regulations”).
Order in the matter of M/s Vaastav ALR International Limited Page 3 of 40 shown below: Year of Issue Security Issued Amount raised (Rs.) (in lakh) Number of allottees 2011-2012 NCDs 6.21
Order in the matter of M/s Vaastav ALR International Limited Page 4 of 40 i. “VAIL shall not mobilize any fresh funds from investors through the Offer of NCDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/41/2018. 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.