sebi:WTM/SM/DDHS/DDHS_Div2/14462/2021-22
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Facts / Headnote
Held RCPS issuance 2004-05 to 2009-10 raising approx INR 5.74 crore was a deemed public issue in violation of Companies Act and DIP Guidelines; directed Noticee no.2 (Managing Director) to refund with 15% p.a. interest and restrained Noticee no.2 from securities market and association for 4 years from completion of refunds, and restrained Noticee nos.3 to 5 from securities market and association for 4 years; no refund liability fastened on Company in liquidation.
Provisions invoked
- s. 11
- s. 19
- s. 11(1)
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 58
- s. 56
- s. 73(2)
- s. 60
- s. 56(1)
- s. 454
- s. 56(4)
Parties
- Shree Ramkrishna Electro Controls Limited
- Chandrakant Bhargav Gole
- Varsha Chandrakant Gole
- Deepali Shriram Karandikar
- Moreshwar Narayan Joshi
Holding
The Company's issuance of 12% Redeemable Cumulative Preference Shares to 801 investors raising approx INR 5.74 crore during 2004-05 to 2009-10 was a public issue violating Sections 56, 60, 73 of Companies Act, 1956 and DIP Guidelines; Noticee no.2 as Managing Director/officer in default must refund with 15% interest, Noticee nos.2-5 are debarred for 4 years, and no refund is fastened on the Company as it is in liquidation.
Full text
Order in the matter of Shree Ramkrishna Electro Controls Limited Page 1 of 25 WTM/SM/DDHS/DDHS_Div2/14462/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA
Order in the matter of Shree Ramkrishna Electro Controls Limited Page 2 of 25 cumulative preference shares. The grievance of the said complainant was that he has not received the dividend and the principal amount from the Company.
Order in the matter of Shree Ramkrishna Electro Controls Limited Page 3 of 25 neither the Company was existing nor any of its officials/employees was present at the said Registered Address of the Company.
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Source: SecMarx — sebi:WTM/SM/DDHS/DDHS_Div2/14462/2021-22. 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.