sebi:WTM/MPB/ERO-BLO/15/2018
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Facts / Headnote
Dr. Jugal Kishore Satapathy held jointly and severally with MFL and other directors liable for illegal public issue of CCPS and directed to forthwith refund money collected during his directorship with 15% p.a. interest from eighth day of collection, provide full asset inventory, not alienate assets except for refund into escrow, issue public notice for refund modalities, and file completion report certified by two peer-reviewed Chartered Accountants; recovery to continue with adjustment for compensation paid under CBI court orders.
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)
- s. 266A
Regulations
- Reg. 7
- Reg. 36
- Reg. 25
- Reg. 47
- Reg. 46
- Reg. 4(2)
- Reg. 107
- Reg. 57
- Reg. 6
- Reg. 111
- Reg. 63
- Reg. 5
Parties
- Dr. Jugal Kishore Satapathy
Holding
MFL's offer and allotment of CCPS to 1,21,222 investors raising Rs. 88,91,98,400 was a deemed public issue in violation of Sections 56, 60 and 73 of the Companies Act, 1956 and DIP Guidelines/ICDR Regulations, and Dr. Jugal Kishore Satapathy as Honorary Director during mobilization is jointly and severally liable to refund with 15% interest.
Full text
Order in the matter of M/s Micro Finance Limited Page 2 of 27 as ‘DIP Guidelines’) and SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009 (hereinafter referred to as ‘ICDR Regulations’). Pursuant to the examination, SEBI passed an interim order dated January 14, 2015 (hereinafter referred to as “interim order”) against MFL and its promoters and directors namely Mr. Durga Prasad Misra, Mr. Ashok Kumar Patnaik, Mr. Baikuntha Nath Patnaik, Ms. Padmabati Patnaik, Ms. Santilata Patnaik, Ms. Sashi Patnaik, Mr. Haricharan Jena, Mr. Dharmananda Swain, Dr. Jugal Kishore Satapathy and Mr. Bijoy Kumar Routray.
Order in the matter of M/s Micro Finance Limited Page 3 of 27 including 6.17.13, 8.3, 8.8.1, 9, 10.1, 10.5 of the DIP Guidelines and Regulations 4(2), 5, 6, 7, 25, 26, 36, 37, 46, 47, 57 and 63 of the ICDR Regulations by engaging in fund mobilising activity from the public, through the issue of CCPS.
Order in the matter of M/s Micro Finance Limited Page 4 of 27 instrumental in the formulation of the alleged plan of mobilization of public funds through allotment of CCPS, and as a result of the aforesaid activity, had violated the applicable laws under Section 56, Section 60 read with Section 2(36) and Section 73 of the Companies Act, 1956, and SEBI Act read with the relevant provisions of the DIP Guidelines and the ICDR Regulations.
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Source: SecMarx — sebi:WTM/MPB/ERO-BLO/15/2018. 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.