sebi:WTM/RKA/EFD/92/2016
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Facts / Headnote
Directions issued: joint and several refund of money collected through NCD issuances with 15% interest within three months; restraint from accessing capital market for four years or till refund, whichever is later; directors restrained from associating with listed/public companies raising money from public; Vishwamitra Debenture Trust and Mr. Sanjay Kumar Pandit prohibited from dealing in securities for four years; interim order disposed of.
Provisions invoked
- s. 19
- s. 12(1)
- s. 73
- s. 28A
- s. 4A
- s. 67(3)
- s. 117B
- s. 56
- s. 2(36)
- s. 60
- s. 117C
Regulations
- Reg. 7
- Reg. 28
- Reg. 4(2)(a)
Parties
- Vishwamitra International Infra Limited
- Vishwamitra India Tour & Hotels Limited
- Mr. Manoj Kumar Chand
- Mrs. Bandana Chand
- Mr. Manish Kumar Chand
- Mr. Pankaj Kumar Chand
- Mr. Hari Govind Singh
- Vishwamitra Debenture Trust
- Mr. Sanjay Kumar Pandit
Holding
VIIL's issuance of 41,60,805 NCDs during FY 2012-13 constituted a public issue under the proviso to section 67(3) of the Companies Act, 1956, and the subsequent transfer of those NCDs by VITHL to 83,109 investors was a deliberate attempt to bypass applicable provisions of the Companies Act, 1956 and the ILDS Regulations. The Vishwamitra entities and their directors are jointly and severally liable to refund the money collected with interest at 15% per annum, and Vishwamitra Debenture Trust acted as an unregistered debenture trustee in violation of section 12(1) of the SEBI Act read with regulation 7 of the Debenture Trustees Regulations.
Full text
______________________________________________________________________________ Order in respect of Vishwamitra International Infra Limited and others Page 2 of 12
______________________________________________________________________________ Order in respect of Vishwamitra International Infra Limited and others Page 3 of 12
______________________________________________________________________________ Order in respect of Vishwamitra International Infra Limited and others Page 4 of 12
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Source: SecMarx — sebi:WTM/RKA/EFD/92/2016. 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.