sebi:WTM/PS/149/ERO/FEB/2016
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Facts / Headnote
Directions issued: refund of monies with 15% interest compounded half-yearly, market access ban for 4 years from completion of refunds, debenture trustees restrained for 4 years, and various compliance directions.
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 117B
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 117C
- s. 56(3)
Regulations
- Reg. 7
- Reg. 6
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 4(4)
- Reg. 4(2)(a)
- Reg. 19
- Reg. 26
- Reg. 16(1)
- Reg. 107
- Reg. 4(2)(b)
- Reg. 4(2)(d)
- Reg. 4(2)(c)
- Reg. 5(2)(b)
Parties
- MBK Business Development (India) Limited
- Shri Prafulla Kumar Kundu
- Shri Saikat Roy
- Shri Anshuman Ghosh
- Shri Ram Sundar Bhattacharya
- Smt. Pratima Roy
Holding
MBK Business Development (India) Limited and its directors were directed to refund monies collected through the issuance of Secured Redeemable Debentures (SRDs) with 15% interest compounded half-yearly, and were restrained from accessing the securities market for four years from completion of refunds. The debenture trustees were found to have violated Section 12(1) of the SEBI Act and were restrained from acting as debenture trustees without registration for four years.
Full text
Page 2 of 18 Regulations’), SEBI passed an interim order dated August 7, 2014 and issued directions mentioned therein against MBK and its Promoter/ Directors, viz. Shri Prafulla Kumar Kundu, Shri Saikat Roy and Shri Anshuman Ghosh, its Debenture Trustee, Secured Debentures Trust of MBK Business Development India Limited (through its Trustees, viz. Shri Ram Sundar Bhattacharya and Smt. Pratima Roy). 2.2 Prima facie findings/allegations: In the said interim order, the following prima facie
Page 3 of 18 comply with Section 117B, 117C of the Companies Act, 1956 and relevant provisions of Debt Securities Regulations mentioned in the interim order. Shri Ram Sundar Bhattacharya and Smt. Pratima Roy having acted as Debenture Trustee without registration have violated Section 12(1) of SEBI Act. 2.7 In view of the prima facie findings on the violations, the following directions were issued in the said interim order dated August 7, 2014 with immediate effect. i. MBK shall not mobilize funds from investors through the Offer of SRDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further
Page 4 of 18 is prohibited from continuing with its present assignment as a debenture trustee in respect of the Offer of SRDs of MBK 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. 2.8 Vide the said interim order MBK and its abovementioned promoter/Directors and the person acting as Debenture trustees, were given the opportunity to file their reply, within 21 days from the date of receipt of the said interim Order. The order further stated that the concerned persons may also indicate whether they desired to avail an opportunity of personal hearing on a date and time to be fixed on a specific request made in that regard.
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Source: SecMarx — sebi:WTM/PS/149/ERO/FEB/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.