sebi:WTM/PS/36/IMD/ERO-RLO/MAY/2016
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Facts / Headnote
Company found to have made unauthorized public offer of RPS; Company and 15 past and present directors directed jointly and severally to refund Rs.4 crore with 15% p.a. interest, to provide asset inventory, to sell assets only for refunds via escrow with peer-reviewed CA certification within three months, and restrained from accessing securities market and issuing offer documents for 4 years from completion of refunds, with recovery under section 28A SEBI Act and references to police/MCA on default.
Provisions invoked
- s. 11A
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 29
- s. 291
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
- s. 56(4)
Regulations
- Reg. 107
Holding
Bishal Distillers Limited made a public offer and issued Redeemable Preference Shares to 238 persons mobilizing Rs.4 crore during FY 2011-12 without complying with sections 56, 60 and 73 of the Companies Act, 1956. The Company and its 15 past and present directors were held jointly and severally liable to refund with 15% p.a. interest and were restrained from the securities market.
Full text
Page 2 of 32 Benukar Banerjee appeared in person. Mr. Aniruddha Dasgupta appeared on behalf of Chandan Shah. On September 04, 2015, Mr. Kamal Das, Advocate appeared on behalf of noticees, Gautam Kumar Halder, Mohammad Kalimullah Baidya, Tushar Kanti Nandi, Santosh Kumar Paul and Swapan Kumar Bose.
Page 3 of 32 to the impugned offer and issue of RPS and to ensure that the Company and its directors are restrained from carrying on with their fund mobilizing activity, SEBI had issued the following
Page 4 of 32 vii. BDL and its abovementioned present 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; viii. BDL and its abovementioned present 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 BDL; ix. BDL and its abovementioned past and present Directors shall furnish complete and relevant information (as sought by SEBI letter dated October 9, 2014), within 14 days from the date of receipt of this Order”.
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Source: SecMarx — sebi:WTM/PS/36/IMD/ERO-RLO/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.