sebi:WTM/PS/55/WRO-ILO/SEPT/2015
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Facts / Headnote
Ex-parte interim directions issued restraining the Company and its promoters/directors from mobilizing funds through issue of convertible RPS and equity shares, prohibiting prospectus/offer documents/advertisements, restraining access to securities market, prohibiting diversion of funds and disposal of assets; show cause notice issued to the noticees to reply within 21 days as to why final directions including refund with 15% interest should not be imposed.
Provisions invoked
- s. 11
- s. 24
- s. 19
- s. 55A
- s. 73
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 27(2)
- s. 60B(9)
- s. 33(1)
- s. 40
- s. 73(3)
- s. 621
- s. 2(70)
- s. 60B(2)
- s. 60B(3)
Regulations
- Reg. 7
- Reg. 2(1)
- Reg. 107
- Reg. 57
- Reg. 25
- Reg. 6
- Reg. 111
- Reg. 59
- Reg. 36
- Reg. 46
- Reg. 63
- Reg. 4(2)(d)
- Reg. 47
- Reg. 5
Holding
SEBI, acting through its Whole Time Member, prima facie held that BNP Real Estate and Allied Limited's offer and issuance of convertible redeemable preference shares (RPS) and equity shares between March 2009 and March 2014 constituted a public issue rather than a private placement, and issued ex-parte interim directions restraining the Company and its promoters/directors from mobilizing funds, issuing offer documents, accessing the securities market, and disposing of assets, pending further proceedings.
Full text
Page 2 of 18 e. Sample copies of the regulations letter and allotment letter issued to the investors who had subscribed to the schemes. f. Sample copies of the agreement letter/ contract required to be entered into by the investor/ applicant under the schemes. g. Details of the scheme wise amounts mobilised by the Company along with the number of investors under the scheme. h. Name and address of all investors who had put in their money with the Company. i. List of all branches with their address. j. Name and Address of agents and details of commission paid for each financial year from start till date. k. Certified copy of the audited financial statement for the Financial Year 2007-08 to 2013-14. Copy of detailed trial balance for 2013-14. l. Copy of the Income Tax Return filed by the Company for the Financial Year 2007-08 to 2013-14. m. Details of regulatory approvals obtained by the Company, etc. n. Details of any other similar schemes floated by the Company or/ and group/associate company(ies). o. Details regarding the relation of the Company with BNP India Developers and Infrastructure Limited.
Page 3 of 18 issued forged certificates bearing the name of the Company and the pre-printed signatures of Ms. Surekha Sharma. Further, it was said that Vinay Choudhary had later got two more companies, which had similar names namely BNP India Developers and Infrastructure Limited and BNP Insurance and Investment Service India Limited and had collected monies from the gullible investors.
Page 4 of 18 Singh Narwaria, Padam Singh Narwaria, Umesh Singh Narwaria and Ravindra Singh Narwaria. Further, it was said that these five persons had issued forged joint venture certificate to various investors and had collected money.
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Source: SecMarx — sebi:WTM/PS/55/WRO-ILO/SEPT/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.