sebi:WTM/PS/10/ERO/APR/2016
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Facts / Headnote
Held NCD offer was deemed public issue in violation of Companies Act, 1956 and ILDS Regulations; directed company and 11 named directors jointly and severally to refund with 15% p.a. interest and restrained them and unregistered debenture trustees from securities market for 4 years; revoked interim directions against Ms. Mahfuza Khatun and Mr. Mukhaleshur Ali Mir and discharged proceedings against them.
Provisions invoked
- s. 11A
- s. 19
- s. 12(1)
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 117B
- s. 56
- s. 73(2)
- s. 291
- s. 67(1)
- s. 67(2)
- s. 67
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
Regulations
- Reg. 7
- Reg. 6
- Reg. 16
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 4(4)
- Reg. 21
- 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)
Holding
The Company's offer and allotment of NCDs to more than 49 persons was a deemed public issue violating Sections 56, 60, 73, 117B, 117C of the Companies Act, 1956 and ILDS Regulations, and the Company with 11 directors who were in office during the offer period are jointly and severally liable to refund with interest, while Ms. Mahfuza Khatun and Mr. Mukhaleshur Ali Mir are discharged.
Full text
Page 2 of 31 For SEBI:Mr. PrashantaMahapatra, General Manager; Mr. T. Vinay Rajneesh, Assistant General Manager and Ms. Nikki Agarwal, Assistant Manager. __________________________________________________________________________
Page 3 of 31 issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders; iii. The past Directors of MIRL, viz. Shri Pratap Kumar Biswal (DIN: 00608810; PAN: AITPB3875F), Shri SwadeshBasu (DIN: 03535561; PAN: ANMPB7097H), Shri BideshBasu (DIN: 03534617; PAN: AWKPB6801G) and Shri Sumeet Kumar Bhagat (DIN: 03294268; PAN: AGRPB6998B) alongwith its past Promoters/Directors, viz. Shri MahfuzaKhatun (DIN: 03083865; PAN: ARDPK4799A), Shri Ajay Kumar Mahapatra (DIN: 00664668; PAN: AEZPM0434K) and Shri Mukhaleshur Ali Mir (DIN: 03150015; PAN: BEMPM2216M), are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, till further orders; iv. MIRL and its abovementioned past and present Directors and Promoters, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions; v. MIRL shall provide a full inventory of all its assets and properties; vi. MIRL's abovementioned past and present Directors and Promoters shall provide a full inventory of all their assets and properties; vii. MIRL and its abovementioned present Directors shall not dispose of any of the propertie
Page 4 of 31 correspondences exchange between SEBI and the Company along with the documents contained therein and the complaint dated January 05, 2014. The interim order advised the Company and its directors to file their replies within 21 days from the date of its receipt and also seek an opportunity of personal hearing.
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Source: SecMarx — sebi:WTM/PS/10/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.