sebi:WTM/PS/35/ERO/IMD/AUG/2015
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Facts / Headnote
Directions issued: refund of Rs. 2.09 crore with 15% p.a. interest compounded half-yearly, market access ban for 4 years from completion of refunds, ban on directors from securities market and association with listed/public companies, public notice and compliance certificate requirements, and referral to MCA and police authorities.
Provisions invoked
- s. 19
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
Parties
- PAFL Industries Limited
- Mr. Anjan Das
- Mr. Sankar Saha
- Mr. Satya Charan Mondal
- Ms. Mita Mukherjee
- Mr. Sanjoy Biswas
- Mr. Abdul Malek
- Mr. Krishna Dakuya
- Mr. Mabud Hossain
- Mr. Rejaul Seikh
- Mr. Sudip Bala
Holding
PAFL Industries Limited made a public issue of Redeemable Preference Shares by allotting to more than 49 persons in FY 2011-12, thereby triggering compliance obligations under sections 56, 60 and 73 of the Companies Act, 1956, which it failed to meet. The Company and its directors are jointly and severally liable to refund Rs. 2.09 crore with 15% p.a. interest compounded half-yearly, and are restrained from accessing the securities market.
Full text
Page 2 of 19 and issue of RPS and to ensure that the Company and its directors are restrained from carrying on with their fund mobilizingactivity, SEBI had issued the following directions:
Page 3 of 19 8. The above directions shall take effect immediately and shall be in force until further orders." 2. The interim order was issued without prejudice to the right of SEBI to take any other action that may be initiated against the Company and its directors in accordance with law. The interim order observed that the prima facie observations made therein were on the basis of the correspondences exchanged between SEBI and PAFL alongwith the documents contained therein; information obtained from the 'MCA 21 Portal' and advised the Company and its directors that they may file their response within a period of 21 days and to inform whether they desire an opportunity of personal hearing in the matter.
Page 4 of 19 (c) As per Form 20B pertaining to March 31, 2013, the subscribed and paid-up capital of the Company is Rs.2,14,54,000/- including Rs.2,09,54,000/- from preference shares. (d) As on the date of AGM relating to FY March 2013, Anjan Das, SankarSaha, Mita Mukherjee and SanjoyBiswas were the directors. (e) As per the MoA and AoA, the initial subscribers/promoters of the Company are - SankarSaha, Anjan Das, Priya Das, BithikaSaha, ManajitSaha, Mita Mukherjee and SekharSaha.
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Source: SecMarx — sebi:WTM/PS/35/ERO/IMD/AUG/2015. 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.