sebi:WTM/PS/188/ERO/GLO/MAR/2016
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Facts / Headnote
Violation found; joint and several refund with interest, debarment and restraint directions issued against company and seven directors
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)
Regulations
- Reg. 111
- Reg. 111(1)
- Reg. 111(2)
Parties
- Jeevan Suraksha Real Estate Limited
- Mr. Chandan Das
- Mr. Ashok Chakraborty
- Mr. Uttam Acharjee
- Ms. Champa Biswas
- Ms. Sangita Das
- Mr. Arju Acharjee
- Ms. Dipamoni Acharjee
Holding
JSREL's allotment of 6,30,100 RPS for Rs. 6,30,10,000 to more than 49 persons was a deemed public issue in violation of Sections 56, 60 and 73 of the Companies Act, 1956 and the DIP Guidelines, and the Company with its seven directors jointly and severally shall refund the money with 15% p.a. interest compounded half-yearly and remain restrained from the securities market.
Full text
Page 2 of 14 17. In view of the foregoing, I, in exercise of the powers conferred upon me under Sections 11(1), 11(4), 11A and 11B of the SEBI Act and Clause 17 of the DIP Guidelines read with Regulation 111 of the ICDR Regulations, 2009, hereby issue the following directions- i. JSREL shall forthwith cease to mobilize any fresh funds from investors through the Offer of RPS 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 directions; ii. JSREL and its Directors, viz. Shri Chandan Das (DIN:00700889), Shri Ashok Chakraborty (DIN:00700921), Shri Uttam Acharjee (DIN:05112214), Smt. Champa Biswas (DIN:02247075), Smt. Sangita Das (DIN:02014574), Shri Arju Acharjee (DIN:00790737) and Shri Dipamoni Acharjee (DIN: 02247014)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. JSREL and the 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. JSREL shall provide a full inventory of all its assets and properties; v. The abovementioned Directors of JSREL shall provide a full inventory of all their assets and prop
Page 3 of 14 3. The interim order was forwarded to the Company and its directors namely Mr. Chandan Das, Mr. Ashok Chakraborty, Mr. Uttam Acharjee, Ms. Champa Biswas, Ms. Sangita Das, Mr. Arju Acharjee and Ms. Dipamoni Acharjee vide respective letters dated March 13, 2015, however, all these had returned undelivered. SEBI proceeded further and granted an opportunity of personal hearing to the Company and its directors on July 28, 2015. The same was also communicated vide the public notice dated July 14, 2015, in the newspapers namely ‘Times of India’, ‘Anandabazar Patrika’, ‘Asomiya Pratidine’, ‘The Assam Tribune’ and ‘Nagaland Post’. The Company and its directors were advised that in case they fail to appear before SEBI on the aforesaid date, then the matter would be proceeded ex-parte on the basis of material available on record. However, no one turned up for the personal hearing on the scheduled date.
Page 4 of 14 Considering that reasonable opportunities of personal hearing have already been afforded to the Company and its directors for making the submissions in the matter, I proceed further on the basis of the material available on record.
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Source: SecMarx — sebi:WTM/PS/188/ERO/GLO/MAR/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.