sebi:WTM/MPB/EFD-1-DRA-IV/51/2017
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Facts / Headnote
SREIL directed to refund RPS money with 15% p.a. interest from eighth day of collection, via inventory, escrow, public notice and CA-certified compliance; SREIL restrained from securities market till expiry of 4 years from completion of refunds; Shri Ramesh Subudhi, Shri Aloke Kumar Bhattacharjee and Shri Asit Ghosh restrained from securities market and from associating with listed public company / public company intending to raise money from public / SEBI intermediary for 4 years.
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
- Reg. 111
- Reg. 111(1)
- Reg. 111(2)
Parties
- M/s Swabhumi Real Estate India Ltd.
- Shri Ramesh Subudhi
- Shri Aloke Kumar Bhattacharjee
- Shri Asit Ghosh
Holding
SREIL's Offer of Redeemable Preference Shares to at least 141 allottees in 2008-09 was a deemed public issue violating Sections 56(1), 56(3), 2(36) read with 60, and 73(1), 73(2), 73(3) of Companies Act, 1956 and DIP Guidelines/ICDR norms, requiring refund with 15% interest and market-access restraints; directors who joined after issuance are not liable for refund but are liable for debarment for failure to ensure refund.
Full text
Order in the matter of M/s Swabhumi Real Estate India Ltd. Page 2 of 20 year 2008–09 (hereinafter referred to as “Offer of RPS”) and raised at least an amount of Rs. 12,92,800 from at least 141 allottees. The number of allottees and funds mobilized has been collated from the documents submitted with the complaints received by 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 Swabhumi Real Estate India Ltd. Page 3 of 20 i. SREIL shall not mobilize any fresh funds from investors through the Offer of Redeemable Preference Shares 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 directions;
Order in the matter of M/s Swabhumi Real Estate India Ltd. Page 4 of 20 Act, 1956 read with section 27(2) of the SEBI Act should not be taken/imposed against them: a. Directing them jointly and severally to refund money collected through the Offer of Redeemable Preference Shares alongwith interest, if any, promised to investors therein;
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/51/2017. 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.