sebi:WTM/PS/60/ERO/IMD/OCT/2015
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Facts / Headnote
Directions issued for refund with 15% interest; Prashanta Ghosh discharged; remaining directors and company restrained from capital market access for 4 years post-refund completion.
Provisions invoked
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 67
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
- s. 56(4)
Parties
- Adorable Agrotech Limited
- Biswajit Biswas
- Dilip Shaw
- Bana Bihari Biswas
- Dhiraj Kumar Shrivastava
- Basant Kumar Singh
- Prashanta Ghosh
- Moumita Biswas
- Binod Majumder
Holding
Adorable Agrotech Limited made a public issue of Redeemable Preference Shares by allotting to more than 49 persons, thereby violating sections 56, 60 and 73 of the Companies Act, 1956, and is liable to refund Rs.25.20 crore with 15% interest to investors. Directors who served during the period of violation are jointly and severally liable for refunds, except Prashanta Ghosh who resigned before the allotments commenced.
Full text
Page 2 of 17 a) AAL shall not mobilize any further funds from investors through the issue of RPS or through the issue of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further orders;
Page 3 of 17 they may file their response within a period of 21 days and to inform whether they desire an opportunity of personal hearing in the matter.
Page 4 of 17 (e) The management of the said companies had approached the investors assuring them of high interest and that the investors believing such assurances and gaining confidence had invested their money. The total liability is Rs.157 crores. (f) SEBI was requested to undertake investigation and action in this respect.
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Source: SecMarx — sebi:WTM/PS/60/ERO/IMD/OCT/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.