sebi:WTM/RKA/EFD-DRA-III/154/2016
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Facts / Headnote
Noticees directed to jointly and severally refund money collected through debenture issuances with 15% interest, restrained from securities market and associating with public companies for four years or till refund, whichever is later; interim order disposed of.
Provisions invoked
- s. 19
- s. 73
- s. 28A
- s. 67(3)
- s. 56
- s. 291
- s. 60
- s. 2(60)
- s. 56(1)
- s. 56(4)
- s. 40(3)
Regulations
- Reg. 4(2)(a)
Parties
- Astha India Infra-Tech Limited
- Shri Partha Sarkar
- Shri Subhash Kar
- Shri Sujit Das
- Shri Suma Kardas
- Shri Sandip Pal
Holding
Astha India Infra-Tech Limited and its five directors were found to have made public issues of Non-Convertible Secured Redeemable Debentures without complying with the Companies Act, 1956 and the SEBI Debt Securities Regulations, and were directed to refund subscription money with 15% interest and restrained from the securities market for four years or till refund, whichever is later.
Full text
Order in the matter of Astha India Infra-Tech Limited Page 2 of 7 ii. The present Directors in AIIL are Shri Partha Sarkar, Shri Subhash Kar, Shri Sujit Das, Shri Suma Kardas and Shri Sandip Pal.
Order in the matter of Astha India Infra-Tech Limited Page 3 of 7 viii. AIIL and its abovementioned Directors shall furnish complete and relevant information (as sought by SEBI letter dated April 10, 2015), within 14 days from the date of receipt of this Order.”
Order in the matter of Astha India Infra-Tech Limited Page 4 of 7 8. I have considered the interim order, the allegations levelled against the Noticees therein and the material available on record. The core allegation in the interim order is that Astha India made a “public issue” of Non–Convertible Secured Redeemable Debentures without complying with provisions of law regulating such public issues, i.e., sections 56, 60, 73, 117B and 117C of the Companies Act, 1956 and regulations 4(2)(a), 4(2)(b), 4(2)(c), 4(2)(d), 4(4), 5(2)(b), 6, 7 , 8 , 9, 12, 14, 15, 16, 17, 19 and 26 of the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (hereinafter referred to as “Debt Securities Regulations”). I note that there is an inadvertent mention of “Redeemable Preference Shares” at para 3(iii) (a) and (b) in the interim order instead of “Non–Convertible Secured Redeemable Debentures” (as mentioned elsewhere in the interim order) and, therefore, may be read as such. The said change will have no bearing on the finding/directions of the interim order.
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Source: SecMarx — sebi:WTM/RKA/EFD-DRA-III/154/2016. 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.