sebi:WTM/MPB/EFD-1-DRA-IV/49/2017
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Facts / Headnote
CRCL and directors Shri Sekh Rezaul Karim, Shri Kumar Kanti Bhattacharya, Shri Debi Prasad Mookherji and Shri Sourav Bardhan directed to jointly and severally refund NCD money collected during respective directorship with 15% p.a. interest from 8th day of collection, via escrow, public notice and CA-certified compliance within 3 months; restrained from securities market for 4 years from completion of refunds; Cell Debenture Trust and Shri Abdul Basad Molla restrained from securities market for 4 years; failure to attract recovery under Section 28A SEBI Act and reference for civil/criminal action.
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
- Cell Realcon Corporation Limited (CRCL)
- Shri Kumar Kanti Bhattacharya
- Shri Debi Prasad Mookherji
- Shri Sourav Bardhan
- Shri Sekh Rezaul Karim
- Cell Debenture Trust
- Shri Abdul Basad Molla
Holding
CRCL's offer and allotment of NCDs to at least 70 allottees raising at least Rs. 19.46 lakhs in 2012-2013 and 2013-2014 was a deemed public issue violating Sections 56, 60, 73, 117B and 117C of Companies Act, 1956 and ILDS Regulations, and its unregistered debenture trustee violated Section 12(1) SEBI Act; CRCL, its four directors and trustee were subjected to refund and market-restraint directions.
Full text
Order in the matter of M/s «Matter» Page 2 of 26 Securities), Regulations, 2008 (hereinafter referred to as “ILDS Regulations”).
Order in the matter of M/s «Matter» Page 3 of 26 *^ No. of allottees and funds mobilized has been collated from the documents submitted with the complaints received by SEBI. However, actual no. of allottees and amount mobilized could be more than the above indicated figures.
Order in the matter of M/s «Matter» Page 4 of 26 DIN:03381343), are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders;
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/49/2017. 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.