sebi:WTM/PS/36/ERO/AUGUST/2015
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Facts / Headnote
Directions issued to refund money collected through RPS issuance with 15% interest, along with market access restraints and other compliance directions.
Provisions invoked
- s. 19
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 67(1)
- s. 56(1)
- s. 56(3)
- s. 67(2)
- s. 56(4)
- s. 73(3)
Regulations
- Reg. 107
Parties
- Magnox Infraprojects Limited
- Shri Dipankar Das
- Shri Sudip Rauth
- Shri Debasish Debnath
- Shri Samrat Bikash Barua
- Shri Vim Cent Pal
- Shri Purnendu Sekhar Halder
Holding
Magnox Infraprojects Limited and its directors were found to have violated Sections 56, 60 and 73 of the Companies Act, 1956 by making a deemed public issue of Redeemable Preference Shares to 2110 investors without complying with prospectus, listing and refund requirements, and were directed to refund the collected amount with 15% interest.
Full text
Page 2 of 13 Dipankar Das, Shri Sudip Rauth, Shri Debasish Debnath, Shri Samrat Bikash Barua, Shri Vim Cent Pal and Shri Purnendu Sekhar Halder. 2.2 Prima facie findings/allegations: In the said interim order, the following prima facie
Page 3 of 13 SEBI; vii. MIL and its abovementioned Directors shall not divert any funds raised from public at large through the Preference Shares Issue, which are kept in bank account(s) and/or in the custody of MIL; viii. MIL and its abovementioned Directors shall, within 21 days from the date of receipt of this Order, provide SEBI with all relevant and necessary information, as sought vide SEBI letter dated June 20, 2014”. 3.1 Vide the said interim order MIL and its abovementioned Directors were given the opportunity to file their replies, within 21 days from the date of receipt of the said
Page 4 of 13 that the Company is collecting money in violation of Section 67 and 73 of the Companies Act, 1956. The Petitioners therein prayed for directions against respondents including SEBI for taking appropriate steps as per law including direction for refund and till date no order against SEBI has been passed in the said writ petition. On perusal of the materials on record, the following issues arise for consideration. Each question is dealt with separately under different headings.
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Source: SecMarx — sebi:WTM/PS/36/ERO/AUGUST/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.