sebi:WTM/PS/167/ERO/FEB/2016
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Facts / Headnote
Directions issued: refund of ₹25 lakh with 15% interest to investors, market access restraints on the Company and directors, asset inventory, public notice, and identification of directors on board during the offer period.
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)
Parties
- MARS Agrofarm Developers Limited
- Mr. Sekh Sahadat Ali
- Mr. Abu Taleb Mohammod
- Mr. Tushar Kanti Kanti Samanta
Holding
MARS Agrofarm Developers Limited made a public issue of Redeemable Preference Shares by allotting to more than 49 persons in a series of transactions, thereby violating Sections 56, 60, 67 and 73 of the Companies Act, 1956, and the Company along with its directors must refund the money raised with 15% interest.
Full text
Page 2 of 12 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. MADL and its abovementioned Directors, 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. MADL shall provide a full inventory of all its assets and properties; v. MADL's abovementioned Directors shall provide a full inventory of all their assets and properties; vi. MADL and its abovementioned Directors 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 Redeemable Preference Shares, without prior permission from SEBI; vii. MADL and its abovementioned 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 MADL; viii. MADL and its abovementioned Directors shall furnish complete and relevant information (as sought by SEBI letter dated November 27, 2014), within 14 days from the date of receipt of this Order.
Page 3 of 12 dated August 07, 2015. The date of hearing was also communicated vide the public notice in the newspapers namely ‘Ananda Bazar Patrika’ and ‘Times of India’ both dated September 03, 2015. The Company and its directors were advised that in case they fail to appear for the personal hearing before SEBI on the aforesaid date, then the matter would be proceeded ex-parte on the basis of material available on record. On the date fixed, no one had appeared either for the Company or for its directors. Considering that reasonable opportunity to the Company and its directors had already been afforded for making
Page 4 of 12 MADL issued "Redeemable Preference Shares" ("Offer of Redeemable Preference Shares") to investors, details of which are provided below – Type of Security Date of Allotment No. of persons to whom preference shares were allotted Total Amount (₹ in Lakhs)
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Source: SecMarx — sebi:WTM/PS/167/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.