sebi:WTM/RKA/EFD/141/2016
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Facts / Headnote
Interim order dated March 30, 2015 disposed of; Noticees directed to refund money collected through issue of Redeemable Preference Shares with 15% interest within three months, restrained from accessing capital market and dealing in securities for four years or till refund, whichever is later, and restrained from associating with listed/public companies raising money from public for the same period.
Provisions invoked
- s. 19
- s. 28A
- s. 67(3)
- s. 56
- s. 73(2)
- s. 291
- s. 2(36)
- s. 60
- s. 56(1)
- s. 56(4)
Parties
- Morningstar Ventures Limited
- Shri Chakrapani Sarangi
- Shri Bhabani Satapathy
- Shri Sujit Mohapatra
- Shri Deepak Ranjan Samant
- Shri Himanshu Bhusan Nayak
- Smt. Swarna Lata Devi
- Shri Kumar Saheb Padma Bhusan Pradhan
Holding
Morningstar Ventures Limited and its directors/promoters were held liable for violating Sections 56, 60 read with Sections 2(36) and 73 of the Companies Act, 1956 by making a public issue of Redeemable Preference Shares without complying with public issue norms, and were directed to refund Rs. 5,62,56,500 with 15% interest and restrained from capital market access for four years or till refund, whichever is later.
Full text
Order in respect of Morningstar Ventures Limited and others. Page 2 of 9 2. The following directions were issued against the Noticees vide the interim
Order in respect of Morningstar Ventures Limited and others. Page 3 of 9 3. Vide the interim order, the Noticees were also called upon to show cause as to why suitable directions/ prohibitions, under sections 11(1), 11(4), 11A and 11B of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) including the following, should not be taken/ imposed against them : “i. Directing them jointly and severally to refund money collected through the Offer of Redeemable Preference Shares along with interest, if any, promised to investors therein; ii. Directing them to not issue prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, for an appropriate period; iii. Directing them to refrain from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.”
Order in respect of Morningstar Ventures Limited and others. Page 4 of 9 6. I have considered the interim order and material available on record. The prima facie findings made in the interim order are undisputed as none of the Noticees have filed their response. As per the interim order, RTIL had issued RPSs during the financial years 2009-10, 2010-11 and 2011-12 to 1,224 allottees and mobilised funds to the tune of `5,62,56,500. These details (Form 2 - Form for filing ‘Return of Allotment’) were received by SEBI from RoC, Cuttack. The year wise details of allotment of RPS, as also noted in the interim
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Source: SecMarx — sebi:WTM/RKA/EFD/141/2016. 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.