sebi:WTM/PS/155/IMD/ERO-BLO/FEB/2016

SEBI · SEBI · 2015-03-20 · Prashant Saran, Whole Time Member

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Facts / Headnote

Company, its six directors and six promoters held jointly and severally liable for illegal public issue of Redeemable Preference Shares and directed to forthwith refund money collected with 15% per annum interest compounded half-yearly, with ancillary directions for inventory, public notice, escrow, certification and 4-year securities market restraint.

Provisions invoked

• s. 11A
• s. 19
• s. 27
• s. 55A
• s. 73
• s. 28A
• s. 4A
• s. 67(3)
• s. 73(2)
• s. 67(1)
• s. 67
• s. 73(1)
• s. 2(36)
• s. 60
• s. 56(1)
• s. 56(3)
• s. 73(3)
• s. 67(2)
• s. 56(4)

Regulations

• Reg. 16
• Reg. 25
• Reg. 15
• Reg. 14
• Reg. 22
• Reg. 4(2)(a)
• Reg. 13(1)
• Reg. 8(1)
• Reg. 6(1)
• Reg. 9(1)
• Reg. 107
• Reg. 4(2)(b)
• Reg. 4(2)(e)
• Reg. 4(2)(d)
• Reg. 4(5)
• Reg. 4(2)(c)
• Reg. 5(1)
• Reg. 4(3)
• Reg. 6(6)
• Reg. 25(1)(d)

Parties

• Tresty Securities Limited
• Mr. Dayanidhi Mohapatra
• Mr. Hari Arjuna Panda
• Mr. Tarapada Giri
• Mr. Ashok Kumar Rout
• Mr. Biswajit Roul
• Mr. Gouranga Charan Sahoo
• Mr. Rasmiranjan Mohapatra
• Mr. Manoranjan Pahi
• Mr. Apurba Ranjan Behera
• Mr. Amit Kumar Gupta
• Mr. Sisir Kumar Padhi
• Mr. Sudhansu Sekhar Barik

Holding

TSL's offer and allotment of Redeemable Preference Shares to at least 65 allottees raising Rs.14,43,500 was held to be a public issue made in violation of Sections 56, 60 and 73 of the Companies Act, 1956 and the RPS Regulations. The Company, its six directors and six promoters were held jointly and severally liable to refund the amount with 15% per annum interest and were restrained from accessing the securities market.

Full text

Page 2 of 20 Date of hearing: September 03, 2015 No appearance by noticee, Mr. Goranga Charan. 1. Securities and Exchange Board of India (“SEBI”), vide an ex-parte interim order dated March 20, 2015 (“the interim order”) prima facie observed that the company, Tresty Securities Limited (“the Company” or “TSL”) is engaged in fund mobilization activity from the public through its offer and issuance of Redeemable Preference Shares (”RPS”) and violated sections 56, 60 and 73 of the Companies Act, 1956 read with the Companies Act, 2013 and the provisions of the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 (“RPS Regulations”). In

Page 3 of 20 (PAN:AJWPB9126D, DIN:05150151) 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; iii. TSL, its abovementioned 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; iv. TSL shall provide a full inventory of all its assets and properties; v. TSL 's abovementioned Directors and Promoters shall provide a full inventory of all their assets and properties; vi. TSL, its abovementioned Directors and Promoters shall not dispose of any of the properties or alienate or encumber any of the assets owned/acquired by that company through the offer of RPS, without prior permission from SEBI; vii. TSL, its abovementioned Directors and Promoters shall not divert any funds raised from public at large through the offer of RPS, which are kept in bank account(s) and/or in the custody of TSL; viii. TSL, its abovementioned Directors and Promoters shall furnish complete and relevant information within 21 days from the date of receipt of this Order.

Page 4 of 20 iii. Directions restraining them from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.

Source: SecMarx — sebi:WTM/PS/155/IMD/ERO-BLO/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.