sebi:WTM/MPB/EFD-1-DRA-IV/98/2020
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Facts / Headnote
Directions issued: Ratan Chowdhury and Chandan Shah jointly and severally liable to refund investor money with 15% p.a. interest; Sujit Acharjee and Prabir Chowdhury restrained from securities market for 4 years; Priti Rani Chowdhury, Ajoy Paul, Litan Saha bound by interim order directions as they did not reply.
Provisions invoked
- s. 19
- s. 73
- s. 28A
- s. 67(3)
- s. 56
- s. 73(2)
- s. 2(36)
- s. 60
- s. 73(3)
Regulations
- Reg. 4(2)(a)
Parties
- Shri Ratan Chowdhury
- Shri Chandan Shah
- Shri Sujit Acharjee
- Shri Prabir Chowdhury
- Ms. Priti Rani Chowdhury
- Shri Ajoy Paul
- Shri Litan Saha
Holding
BAIL's offer and allotment of RPS and NCDs constituted a deemed public issue in violation of Section 73 of the Companies Act and SEBI (ILDS) Regulations; Ratan Chowdhury and Chandan Shah are jointly and severally liable to refund investor monies with 15% interest, while Sujit Acharjee and Prabir Chowdhury are liable to ensure refunds during their directorship and are debarred from the securities market for 4 years.
Full text
Order in the matter of M/s Bishal Abasan India Limited Page 2 of 25 A. ALLOTMENT DETAILS OF REDEEMABLE PREFERENCE SHARES – FINANCIAL YEAR NO. OF ALLOTTEES VALUE OF ALLOTMENT ( ₹) 2011-2012 293 2,75,76,000
Order in the matter of M/s Bishal Abasan India Limited Page 3 of 25 who were not covered in the interim order dated May 06, 2015. Further, it was observed that Shri Litan Saha was/is one of the present directors, having been re-appointed on April 27, 2015. These Director(s) allegedly were responsible to comply with Section 73(2) of the Companies Act, in making refunds to the investors. Since the refunds were not made, SEBI was advised examine in this regard and initiate appropriate action against them, in accordance with law. The list of Director(s) an their period of direction ship is shown below –
Order in the matter of M/s Bishal Abasan India Limited Page 4 of 25 67(3) of the Companies Act. 10. The above Offer of RPS and NCDs allotment were deemed public issue of securities under the first proviso to section 67(3) of the Companies Act. In view of the prima facie
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Source: SecMarx — sebi:WTM/MPB/EFD-1-DRA-IV/98/2020. 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.