sebi:WTM/PS/99/NRO/DEC/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violation found; company and past and present directors directed jointly and severally to refund RPS money with interest and subjected to market-access and dealing restraints
Provisions invoked
- s. 19
- s. 27
- s. 55A
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 56
- 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
- Life Care Real Developers Limited
- Mr. Arshad Hussain
- Ms. Shiba Pravin
- Mr. Mohd. Seraj Lari
- Mr. Rajneesh Chandra Shukla
- Mr. Yogendra Pratap Shahi
- Mr. Mohammad Aftab Alam
- Mr. Mohd Gani
Holding
LCRDL's issue and allotment of Redeemable Preference Shares to at least 1,696 persons was a deemed public issue in violation of public-issue norms under Sections 56, 60 and 73 of the Companies Act, 1956. LCRDL and its past and present directors were held jointly and severally liable to refund the money collected with 15% p.a. interest compounded half-yearly and were restrained from the securities market.
Full text
Page 2 of 16 Preference Shares (hereinafter referred to as ‘RPS’) and had allegedly violated the provisions of Sections 56, 60 (read with Section 2(36)), 67, 73 of the Companies Act, 1956 read with the Companies Act, 2013. In order to protect the interest of investors 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 16 'MCA 21 Portal' and the complaint received by SEBI. The interim order advised the Company and its directors (past and present) that they may file their replies within 21 days from the date of receipt of the order and also to seek an opportunity of personal hearing.
Page 4 of 16 2015, again requested for ten days’ time for submitting the details. Though the requested time has elapsed, the Company has failed to submit the document/ information as sought during the course of personal hearing.
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Source: SecMarx — sebi:WTM/PS/99/NRO/DEC/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.