sebi:WTM/PS/118/IMD/ERO-PLO/DEC/2015
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Facts / Headnote
Directions issued: joint and several refund of money collected through Redeemable Preference Shares with 15% p.a. interest compounded half-yearly, public notice, asset inventory, escrow account for asset sales, restriction on capital market access for 4 years from completion of refunds, and referral to MCA for winding up and to police for fraud.
Provisions invoked
- s. 11A
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 67(3)
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 56(4)
Regulations
- Reg. 107
- Reg. 111
Parties
- Sarada Pleasure and Adventure Limited
- Mr. Rakesh Shrivastav
- Mr. Sukumar Debnath
- Mr. Shubhankar Ray
- Smt. Nandita Sengupta
- Smt. Savita Srivastava
Holding
The Company made a 'public issue' of Redeemable Preference Shares to more than 49 investors and thereby violated sections 56, 60 and 73 of the Companies Act, 1956 and the DIP Guidelines/ICDR Regulations, and the Company along with its present and past directors are jointly and severally liable to refund the money collected with 15% p.a. interest compounded half-yearly.
Full text
Page 2 of 17 the investors and to ensure that the Company and its directors do not continue to mobilize public money, the interim order had passed the following directions: 7. “In view of the foregoing, I, in exercise of the powers conferred upon me under Sections 11, 11(4), 11A and 11B of the SEBI Act, hereby issue the following directions –
Page 3 of 17 NanditaSengupta and Smt. Savita Srivastava {company and the above individuals are collectively referred to as “noticees”} were afforded opportunity to file their response to the
Page 4 of 17 185102000002578. The same forced it to redeem the shares by payment in cash directly to the bank account of the investor and by cash to those who visited its office in Siliguri.
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Source: SecMarx — sebi:WTM/PS/118/IMD/ERO-PLO/DEC/2015. 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.