sebi:WTM/PS/42/ERO/IMD/MAY/2016
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Facts / Headnote
Directions issued against the noticee: joint and several refund of monies collected through preference share offer with 15% p.a. interest, restraint from securities market access and issuing offer documents, asset inventory, and compliance with refund directions; without prejudice to further adjudication/prosecution.
Provisions invoked
- s. 19
- s. 27
- s. 28A
- s. 73(2)
- s. 29
- s. 291
- s. 73(1)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 56(1)
- s. 73
- s. 56(3)
- s. 56(4)
Parties
- Lina Kayal
Holding
The noticee, a director of RAL from incorporation (July 13, 2010) to June 24, 2013, is liable for violations of sections 56, 60 and 73 of the Companies Act, 1956 committed by the Company in its offer and issue of preference shares, and is jointly and severally liable to refund monies collected with interest at 15% p.a.
Full text
Page 2 of 10 Companies Act, 1956. Accordingly, SEBI issued an interim order cum show cause notice dated November 20, 2015 (“the interim order”), wherein the following directions were issued against her: i. “The past Director of RAL, viz. Lina Kayal (PAN: ANHPK8201D; DIN: 02699751), is prohibited from issuing 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, till further orders; ii. The abovementioned past Director of RAL is restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions; iii. The abovementioned past Director of RAL shall provide a full inventory of all her assets and properties”.
Page 3 of 10 (c) She has a flat in her name situated at P.C. Roy Road, Duila, Sankrail, Howrah-711302 and the purchase price was around Rs.22.50/- lakh. Against this flat, she has taken a loan from UCO Bank and the present outstanding loan amount was Rs.35.92 lakh. (d) Regarding the refund of monies collected under preference shares, the noticee stated that she had discussed the same with the present directors of the Company, who had stated that the preference shares were issued for a period of 10 years and that they were taking steps for refunding the money to the investors before the period.
Page 4 of 10 8. I also note that the noticee vide the afore-referred letter dated April 11, 2016, inter alia stated the following: “I was never involved in the activity of the company.
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Source: SecMarx — sebi:WTM/PS/42/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.