sebi:WTM/PS/39/ERO/IMD/AUG/2015
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Facts / Headnote
Company and 7 directors jointly and severally directed to forthwith refund SRD/RPS and product/land scheme monies with 15% p.a. compounded half-yearly, issue public notice, file asset inventory and peer-reviewed CA completion certificate; directors and two unregistered debenture trustees restrained from securities market for 4 years / till refunds complete; failure to attract section 28A recovery, adjudication, police and MCA winding-up references.
Provisions invoked
- s. 19
- s. 12(1)
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 117B
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 117C
- s. 56(3)
- s. 73(3)
Regulations
- Reg. 7
- Reg. 6
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 4(4)
- Reg. 4(2)(a)
- Reg. 19
- Reg. 26
- Reg. 16(1)
- Reg. 4(2)(b)
- Reg. 4(2)(d)
- Reg. 4(2)(c)
- Reg. 5(2)(b)
Parties
- Aspen Projects India Limited
- Abhijit Dasgupta
- Bhaskar Saha
- Ashim Maitra
- Ujjal Kumar Roy
- Avijit Kumar Ganguly
- Debopam Sur
- Goutam Sarkar
- Ram Sunder Bhattacharya
- Mita Roy
Holding
SEBI held APIL's issues of Secured Redeemable Debentures and Redeemable Preference Shares to hundreds/thousands of investors were deemed public issues made in violation of public-issue norms, and that Ram Sunder Bhattacharya and Mita Roy acted as unregistered, ineligible debenture trustees, directing joint and several refund with 15% interest and market restraint.
Full text
Page 2 of 23 2. The interim order also alleged that the Company had appointed Mr. Ram Sunder Bhattacharya and Smt. Mita Roy as Debenture Trustees for the issuance of Secured Redeemable Debenturesand that such persons prima facie failed to meet the eligibility criteria specified under regulation 7 of the SEBI (Debenture Trustees) Regulations, 1993 (hereinafter referred to as "the Debenture Trustees Regulations") and have acted as unregistered Debenture Trustees, in violation of which is a violation of the provisions of section 12(1) of the SEBI Act read with the Debenture Trustee Regulations.
Page 3 of 23 vi. Shri Ram Sunder Bhattacharya and Smt. Mita Roy are prohibited from continuing with their present assignment as debenture trustees in respect of the issuance of Secured Redeemable Debentures of APIL and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity, from the date of this order till further directions. vii. APIL and its abovementioned Directors shall provide all necessary and relevant information in respect of the schemes 'Advance against product purchase‟ and „Advance from customer–land' (as sought vide SEBI letters dated February 27, 2013; April 16, 2013; April 26, 2013; December 3, 2013; January 31, 2014 and February 14, 2014) within 15 days from the date of receipt of this Order.
Page 4 of 23 7. An opportunity of personal hearing was fixed on August 22, 2014 and the same informed to the noticees. Subsequently, one Mr. Aditya Kanodia, Advocate vide letter dated August 20, 2014 informed that Mr. R.L. Gaggar, Advocate was no longer engaged in the matter and that he is the Advocate engaged by the Company and its 7 directors and requested for time of 4 weeks for examining the documents in the matter, which according to him were voluminous.
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Source: SecMarx — sebi:WTM/PS/39/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.