sebi:WTM/SR/ERO/78/04/2015
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Facts / Headnote
Interim directions issued restraining PAIL and its directors from mobilizing further funds, accessing the securities market, and disposing of assets; show cause notice issued as to why further directions/prohibitions should not be imposed.
Provisions invoked
- s. 11
- s. 55A
- s. 22
- s. 73
- s. 4A
- s. 67(3)
- s. 67
- s. 56
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 73(2)
- s. 56(1)
- s. 56(3)
Parties
- Pious Agro Industries Limited (PAIL)
- Shri Palas Chandra Dey
- Shri Monoranjan Dey
- Smt Sunita Saha
- Shri Chiranjib Banerjee
Holding
PAIL prima facie violated Sections 56, 60 read with 2(36), and 73 of the Companies Act, 1956 by mobilizing funds from the public through an offer of Redeemable Preference Shares (RPS) to fifty persons or more without complying with prospectus registration and listing requirements. SEBI issued interim directions restraining PAIL and its directors from further fund mobilization, securities market access, and asset disposal, and issued a show cause notice.
Full text
Page 2 of 11 f. Number of shares/debentures allotted and value of such allotment against each allottee’s name. g. Details regarding subscription amount raised. h. Date of allotment of the shares/debentures. i. Copies of the minutes of Board/ Committee meeting in which the resolution has been passed for allotment. j. Date of dispatch of debenture/share certificates, etc. k. Details of the total number of applicants for each of PAIL's schemes besides the list of final allottees. l. Copies of application forms, pamphlets, advertisements and other promotional material circulated for issuance of shares/debentures. m. Terms and conditions of the issue of shares/debentures. n. Whether the company has applied for listing of its securities with any of the stock exchanges. o. Copy of Form 2 and Form 10 filed with the RoC.
Page 3 of 11 4. Meanwhile, efforts were made to obtain the relevant information/documents from Ministry of Corporate Affair's ('MCA') website i.e. MCA21 portal.
Page 4 of 11 Court of India in Sahara India Real Estate Corporation Limited & Ors. vs. SEBI (Civil Appeal no. 9813 of 2011) (Judgment dated August 31, 2012) (hereinafter referred to as the "Sahara Case"), had observed :
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Source: SecMarx — sebi:WTM/SR/ERO/78/04/2015. 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.