sebi:WTM/SR/ERO/42/03/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Interim directions issued restraining JSREL and its directors from mobilizing funds, issuing offer documents, and dealing in securities market; show cause notice issued
Provisions invoked
- s. 11
- s. 55A
- s. 22
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 73(1)
- s. 2(36)
- s. 60
- s. 73(2)
- s. 67(1)
- s. 56(1)
- s. 56(3)
- s. 67(2)
Regulations
- Reg. 111
- Reg. 111(1)
- Reg. 111(2)
Parties
- Jindal Steel and Energy Limited (JSREL)
- Shri Chandan Das
- Shri Ashok Chakraborty
- Shri Uttam Acharjee
- Smt. Champa Biswas
- Smt. Sangita Das
- Shri Arju Acharjee
- Shri Dipamoni Acharjee
Holding
SEBI prima facie found that JSREL's offer of Redeemable Preference Shares (RPS) to more than 299 investors constituted a public issue under the first proviso to Section 67(3) of the Companies Act, 1956, thereby triggering obligations of listing under Section 73, prospectus registration under Section 60, and compliance with DIP Guidelines/ICDR Regulations, and issued interim directions restraining further fund mobilization.
Full text
Page 2 of 12 ii. Copy of Balance Sheet and Profit and Loss account of the company for FY 2008-09, 2009-10 and 2010-11. iii. Copies of correspondence between BIEO and JSREL.
Page 3 of 12 iv. It is also observed from Balance Sheets of the company for FY 2008-09, 2009-10 and copy of the extracts of minutes of EGM held on April 05, 2010 that JSREL increased authorized preference share capital from Rs.4,25,00,000/- as on March 31, 2009 to Rs.9,60,00,000/- as on March 31, 2010. It is also evident from copy of notice for EGM to be held on June 14, 2011 that JSREL intended to further increase authorized preference share capital to 15,00,00,000/-. This, prima facie indicates that JSREL continues to mobilize large amount of funds from investors.
Page 4 of 12 9. In this regard – i. Reference is also made to Sections 67(1) and 67(3) of the Companies Act, 1956, which are reproduced as under:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/SR/ERO/42/03/2015. 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.