sebi:WTM/PS/65/ERO/IMD/OCT/2015
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Facts / Headnote
Directions issued: refund of ₹1.11 crore with 15% p.a. interest compounded half-yearly, market access restrictions for 4 years, asset inventory, public notice for refunds, and referral to RoC/MCA/State Government for further action.
Provisions invoked
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 73(2)
- s. 67(1)
- s. 67(2)
- s. 67
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(3)
- s. 73(3)
Parties
- Greenworld Agro Industries Limited
- Md. Mahbub Alam Kamal
- Mohammed Wahedur Rahman
- Ashis Mukherjee
- Sakila Banu
- Nargis Parvin
- Mohammed Karej Shaikh
- Rejaul Shaikh
- Imrul Islam
Holding
The Company's issuance of Redeemable Preference Shares to more than 49 persons constituted a public issue under the first proviso to Section 67(3) of the Companies Act, 1956, and the Company and its directors (past and present) are jointly and severally liable to refund ₹1.11 crore with 15% interest to investors for non-compliance with Sections 56, 60 and 73 of the Companies Act, 1956.
Full text
Page 2 of 15 Redeemable Preference Shares (hereinafter referred to as „RPS‟) and had allegedly violated the provisions of Sections 56, 60 (read with Section 2(36)), 73 of the Companies Act, 1956 read with the Companies Act, 2013. In order to protect the investors who have subscribed to the impugned offer and issue of RPS and to ensure that only legitimate fund raising activities are carried on by the Company and its directors, SEBI had issued the following directions: “… …
Page 3 of 15 … 10. This Order is without prejudice to the right of SEBI to take any other action that may be initiated against Greenworld and its abovementioned Directors in accordance with law.”
Page 4 of 15 Other noticees including the Company had failed to turn up for the personal hearing. Considering that reasonable opportunities to the Company and its directors have already been afforded for making the submissions in the matter, I proceed further as against these on the basis of the material available on record.
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Source: SecMarx — sebi:WTM/PS/65/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.