sebi:WTM/RKA/EFD/146/2016
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Facts / Headnote
Company and directors held liable; directed to jointly and severally refund subscription money with 15% p.a. interest within three months; restrained from capital market and associating with public companies for four years or till refund, whichever is later; debenture trustee prohibited from securities market dealings for four years; interim order cum show cause notice dated May 08, 2015 disposed of.
Provisions invoked
- s. 19
- s. 12(1)
- s. 28A
- s. 67(3)
- s. 73(2)
- s. 291
- s. 2(36)
- s. 56(1)
- s. 56(4)
Regulations
- Reg. 7
- Reg. 28
- Reg. 4(2)(a)
Parties
- MRS Agrotech India Limited
- Shri Subhashish Chakarborty
- Shri Rajdeep Sadhu
- Shri Samrat Sadhu
- Smt. Dolon Sadhu Kundu
- Shri Bablu Debnath
- Shri Narayan Chandra Bhowmick
- Shri Subrata De
- MRS Debenture Trust (represented by trustee Shri Tinku Das)
Holding
MRS Agrotech India Limited and its directors were held liable for making a public issue of NCDs without complying with the Companies Act, 1956 and ILDS Regulations, and were directed to jointly and severally refund subscription money with 15% p.a. interest, with market access restrictions for four years or till refund. MRS Debenture Trust and its trustee were held guilty of contravening section 12(1) of the SEBI Act and regulation 7 of the Debenture Trustees Regulations for acting as an unqualified debenture trustee.
Full text
Order in respect of MRS Agrotech India Limited and others. Page 2 of 10 3. In view of the alleged contraventions and the reasons stated in the interim order, the following directions were issued: “i. MRS shall forthwith cease to mobilize any fresh funds from investors through the Offer of NCRSDs or through the issuance of equity shares or any other securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions; ii. MRS and its present/ past Directors, viz. Mr. Shri Subhashish Chakarborty (DIN: 02410395), Shri Rajdeep Sadhu (DIN: 02410910), Shri Samrat Sadhu (DIN: 06519386), Smt Dolon Sadhu Kundu (DIN: 03634295), Shri Bablu Debnath (DIN: 06601618), Shri Narayan Chandra Bhowmick (DIN: 06601620) and Shri Subrata De (DIN: 06601623), are prohibited from issuing 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, till further orders; iii. MRS and its abovementioned Directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions; iv. MRS shall provide a full inventory of all its assets and properties; v. MRS’s abovementioned Directors shall provide a full inventory of all their assets and properties; vi. MRS and its abovementioned Directors shal
Order in respect of MRS Agrotech India Limited and others. Page 3 of 10 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 MRS Agrotech India Limited and others. Page 4 of 10 declaration that Shri Bablu Debnath and Shri Subrata De are released from the entire financial burden, liabilities and all the claims, damages that may arise out of the transactions caused by the company. f. They were indemnified by the company against all possible claims and demands arising in due course of the said company both prior and subsequent to his resignation from MRS. g. They had not received any deposits/ funds as alleged in the interim order.
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Source: SecMarx — sebi:WTM/RKA/EFD/146/2016. 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.