sebi:WTM/PS/06/ERO/APRIL/2014
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Kolkata Weir Industries Limited and its 11 directors/promoters held liable for illegal public issues and directed jointly and severally to forthwith refund all money collected through redeemable preference shares including pending-allotment money with interest, to issue public notice of refund modalities, to file completion certificate, and restrained from accessing/dealing in securities market till expiry of three years from completion of refunds.
Provisions invoked
- s. 19
- s. 73
- s. 67(3)
- s. 67
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 73(3)
Parties
- Kolkata Weir Industries Limited
- Mr. Sahajahan Khan
- Mr. Samsul Alam Khan
- Mr. Ram Krishna Mondal
- Mr. Prabir Haldar
- Mr. Ratan Kumar
- Mr. Ajay Kumar Srivastab
- Mr. Selim Laskar
- Mr. Lukaman Ansari
- Mr. Chandan Chowdhury
- Mr. Sahajamal Khan
- Mr. Lakshmi Kanta Gayen
Holding
Kolkata Weir Industries Limited's issuances of redeemable preference shares to 1,05,809 investors mobilising Rs.47.90 crores plus Rs.40.03 crores pending allotment were public issues made without complying with public-issue norms. The Company and its 11 directors/promoters were directed jointly and severally to forthwith refund the entire collection with interest and were restrained from the capital market.
Full text
Page 2 of 14 (b) not to dispose of any of the properties or alienate any of the assets owned/acquired by KWIL without prior permission from SEBI ; and (c) not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of KWIL.
Page 3 of 14 (d) The Company had contravened the provisions of section 73(1) of the Companies Act as it was statutorily mandated to obtain permission for listing of such shares issued to the public on a stock exchange, which it failed.
Page 4 of 14 (a) The Company is in compliance with the directions passed vide the interim order. (b) The Company is an unlisted public limited company registered with the Registrar of Companies on May 05, 2009. It has obtained the certificate to commence business on May 26, 2009.
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Source: SecMarx — sebi:WTM/PS/06/ERO/APRIL/2014. 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.