sebi:WTM/PS/29/ERO/IMD/MAY/2016
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Facts / Headnote
Noticee held liable for violations; directed to jointly and severally refund monies with 15% p.a. interest, restrained from securities market access and issuing offer documents for 4 years from completion of refunds, and directed to provide asset inventory.
Provisions invoked
- s. 19
- s. 27
- s. 28A
- s. 117B
- s. 73(2)
- s. 29
- s. 291
- s. 73(1)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 117C
- s. 56(3)
- s. 73
- s. 56(4)
- s. 234
Regulations
- Reg. 4(2)(a)
Parties
- Mr. Basir Uddin Khan
Holding
The noticee, a past director of BKSIL, was held liable for violations of sections 56, 60, 73, 117B and 117C of the Companies Act, 1956 read with the ILDS Regulations in respect of the company's offer and issue of RPSs and NCDs, and was directed to jointly and severally refund monies with 15% interest and be restrained from the securities market for 4 years from completion of refunds.
Full text
Page 2 of 13 difference in the maturity period. An illustrative list of issuances was prepared on the basis of complaints received by SEBI. As per such list, the Company had issued NCDs to atleast 70 investors. The issuances were made on various dates in the years 2012 and 2013.
Page 3 of 13 accordingly issued various directions against them including direction to refund the public funds mobilized under such offer and issuance of securities. SEBI had also restrained Bharat Krishi Secured Debenture Trust, Mr. Swadesh Banerjee, Bharat Krishi Secured Debenture Development Trust, Mr. Amit Samanta and Mr. Jagdish Chandra Nag from, acting as intermediaries, accessing the securities market and buying, selling or dealing in securities, in any manner whatsoever, directly or indirectly, for a period of 4 years, for being ineligible to act as debenture trustees and acted without registration from SEBI.
Page 4 of 13 i. Directing him jointly and severally to refund money collected through the Offer of NCDs and Offer of Preference Shares alongwith interest, if any, promised to investors therein; ii. Directing him not to issue 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, for an appropriate period; iii. Directing him to refrain from accessing the securities market and prohibiting him from buying, selling or otherwise dealing in securities for an appropriate period.
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Source: SecMarx — sebi:WTM/PS/29/ERO/IMD/MAY/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.