sebi:WTM/PS/07/IMD/ERO/APR/2016
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Facts / Headnote
Directions issued: joint and several refund of Rs.10 crore NCD proceeds with 15% p.a. interest compounded half-yearly; market access ban for 4 years from completion of refunds; inventory of assets; public notice for refunds; references to State Police, MCA and RoC; debenture trustee restrained.
Provisions invoked
- s. 11A
- s. 19
- s. 12(1)
- s. 27
- s. 55A
- s. 28A
- s. 4A
- s. 67(3)
- s. 117B
- s. 73(2)
- s. 29
- s. 291
- s. 73(1)
- s. 2(36)
- s. 60
- s. 67(1)
- s. 56(1)
- s. 117C
- s. 56(3)
- s. 73
Regulations
- Reg. 7
- Reg. 6
- Reg. 16
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 28
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 4(4)
- 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
- Chakra Infrastructure Limited
- Partha Chakraborti
- Soma Chakraborti
- Swapan Kumar Sen
- Biplab Halder
- Litan Chandra Sen
- Prithwis Kumar Das
- Swapan Majumdar
- Bijoy Das
- Pranab Kumar Roy
- Subhas Bose
- Santosh Kumar
Holding
Chakra Infrastructure Limited made a public issue of NCDs during FY 2012-13 by allotting to 48 investors and then transferring to numerous others as a sham to evade Section 67(3) of the Companies Act, 1956, thereby violating Sections 56, 60, 73, 117B of the Companies Act, 1956 and the ILDS Regulations. The Company and its directors are jointly and severally liable to refund the money collected with 15% p.a. interest, and are restrained from the securities market for 4 years from completion of refunds.
Full text
Page 2 of 34 Date of hearing: April 22, 2015 Appearance: Noticees, Parta Chakraborty, Swapan Kumar Sen and Soma Chakraborty were represented by Advocates, M/s.TriptimoiTalukdar and HitendraNathPramanik.
Page 3 of 34 2. In order to the protect the interest of investors and to ensure that the Company does not continue with its unauthorized fund mobilization through its offer and issue of NCDs, SEBI issued the following directions vide the interim order:
Page 4 of 34 ix. The Debenture Trustee, viz. Chakra Debenture Trust (represented by its trustee Mr. Sunil Kumar Saha), is prohibited from continuing with his present assignment as a debenture trustee in respect of the Offer of NCDs of CIL and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity, from the date of this order till further directions.
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Source: SecMarx — sebi:WTM/PS/07/IMD/ERO/APR/2016. 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.