sebi:WTM/PS/137/ERO-GLO/JAN/2016
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Facts / Headnote
Directions issued: refund of RPS monies with 15% p.a. interest compounded half-yearly, market and securities-market restraints, asset inventory, public notice, and escalation actions on failure to comply.
Provisions invoked
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 56
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 67
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
Holding
The Company's issuance of Redeemable Preference Shares to more than 49 persons constituted a public issue, and the Company and its directors (both those in office at the time of allotment and those who later joined the Board) are liable to refund the monies collected with interest and are restrained from the securities market.
Full text
Page 2 of 19 1956. In order to protect the interest of investors and to ensure that only legitimate fund raising activities are carried on by the Company and its directors, SEBI had issued the following directions: “… …
Page 3 of 19 viii. MGPL and its abovementioned present Directors shall not divert any funds raised from public at large through the Offer of Redeemable Preference Shares, which are kept in bank account(s) and/or in the custody of MGPL; ix. MGPL and its abovementioned past and present Directors shall co-operate with SEBI and shall furnish all information/documents sought vide letters dated April 26, 2013, September 26, 2013 and January 30, 2014.
Page 4 of 19 public notice dated July 14, 2015,in the newspaper viz. Times of India and Anand Bazar Patrika. The directors of the Company namely Ms. Pritha Bag, Mr. Biswarup Santra, Mr. Arijit Ghosh and Mr. Dipanshu Acharjee vide respective e-mails dated July 14, 2015, July 20, 2015, July 26, 2015 and July 27, 2015 filed the written submissions and also expressed their inability to appear for the personal hearing. The written
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Source: SecMarx — sebi:WTM/PS/137/ERO-GLO/JAN/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.