sebi:WTM/PS/ERO/64/JAN/2015
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Facts / Headnote
Directions issued requiring refund of monies with 15% interest, asset sale under Asset Sale Committee, market access bans, and restraints on unregistered debenture trustees.
Provisions invoked
- s. 19
- s. 12(1)
- s. 11(2)
- s. 55A
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 465
- s. 73(1)
- s. 2(36)
- s. 60
- s. 73(2)
- s. 56(1)
- s. 56(3)
- s. 73(3)
Regulations
- Reg. 7
- Reg. 6
- Reg. 3
- Reg. 16
- Reg. 9
- Reg. 17
- Reg. 12
- Reg. 28
- Reg. 8
- Reg. 15
- Reg. 14
- Reg. 5
- Reg. 4(4)
- Reg. 4(2)(a)
- Reg. 19
- Reg. 26
- Reg. 4(2)(b)
- Reg. 6A
- Reg. 4(2)(d)
- Reg. 4(2)(c)
Parties
- Golden Life Agro India Limited
- Mr. Tipu Sultan
- Mr. Biswanath Mondal
- Mr. Subhas Sarkar
- Mr. Nirjal Pal
- Mr. Swapan Sadhukhan
- Mr. Chandan Debnath
- Mr. Uttam Chakraborty
- Mrs. Jyotsna Sadhukhan
- Mrs. Jharna Sarkar
Holding
The Company's issuance of NCDs to more than 49 investors constituted a public issue, and the Company, its directors, and debenture trustees were found to have contravened public issue norms and registration requirements, warranting directions for refund of monies with interest and market access restrictions.
Full text
Page 2 of 20 3. In the course of the examination, SEBI vide its letters dated July 22, 2013 issued to the Company and its Advocate, inter alia stated "It has come to our notice that you (GLAIL) are raising funds from public by issuing Non-Convertible Redeemable Secured Debentures (hereinafter referred to as "NCDs") ostensibly by way of private placement. No Prospectus or DRHP or statement in lieu of prospectus or information memorandum (was) filed with (SEBI)", and sought the following information/documents :
Page 3 of 20 ii. Date of opening and closing – Date of opening 27.12.2010 and date of closing 31.03.2013. iii. Details regarding the number of applications – No application form circulated to the general public. The application form provided only to the intended subscribers without any right to pass on the offer to any other person to whom the offer was not made directly."
Page 4 of 20 appears to have been illegally obtained from the depositors. Both the SEBI and the ROC should monitor the activities of the petitioner company and ensure strict compliance of this order."
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Source: SecMarx — sebi:WTM/PS/ERO/64/JAN/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.