sebi:WTM/SR/ERO/87/11/2014
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Facts / Headnote
Interim directions issued prohibiting PIL and its directors from mobilizing fresh funds, accessing securities market, disposing of assets, and diverting funds; debenture trustees prohibited from continuing assignments; noticees directed to reply within 21 days
Provisions invoked
- s. 11
- s. 12(1)
- s. 55A
- s. 22
- s. 73
- s. 4A
- s. 30
- s. 67(3)
- s. 67
- s. 117B
- s. 56
- s. 73(2)
- s. 465
- s. 67(1)
- s. 67(2)
- s. 73(1)
- s. 2(36)
- s. 60
- s. 56(1)
- s. 117C
Regulations
- Reg. 7
- Reg. 14
- Reg. 12
- Reg. 4(2)(a)
- Reg. 19
- Reg. 15
- Reg. 16
- Reg. 26
- Reg. 8
- Reg. 4(2)(b)
- Reg. 6
- Reg. 17
- Reg. 9
- Reg. 4(2)(d)
- Reg. 4(2)(c)
- Reg. 4(3)
- Reg. 4(4)
- Reg. 5(2)(b)
Parties
- PIL (company)
- Shri Rajesh Kumar Agarwal
- Shri Koushik Ghosh
- Shri Navin Pratap Singh
- Shri Tapas Kumar Dey
- Shri Hemanta Banerjee
- Shri Abhishek Loharuka
Holding
PIL prima facie violated the SEBI Act, Companies Act, 1956 and Debt Securities Regulations by mobilizing ₹59.37 Crores from over 21,378 investors through its Offer of NCDs, which constituted a public issue rather than a private placement, without complying with listing, prospectus registration, debenture trustee, and other requirements. Interim directions were issued restraining PIL, its directors, and its unregistered debenture trustees from further fund mobilization and market activity.
Full text
Page 2 of 15 e) Names and details of the Key Managerial Personnel of the company; f) Other information in respect of every series of debentures issued by PIL, viz. - i. Date of opening and closing of the subscription list for the said debentures; ii. Details regarding the number of application forms circulated inviting subscription for debentures; iii. Details regarding the number of applications received; iv. Details regarding the number of allottees and list of such allottees; v. Number of debentures alloted and value of such allotment against each allottee's name; vi. Details regarding subscription amount raised; vii. Date of allotment of the debentures; viii. Copies of the minutes of Board/committee meeting in which the resolution has been passed for allotment; ix. Date of dispatch of debenture certificates etc.; x. Details of the total number of applicants for each of its scheme besides the list of final allottees; xi. Copies of application forms, pamphlets, advertisements and other promotional material circulated for issuance of debentures; xii. Terms and conditions of the issue of debentures.
Page 3 of 15 3. The material available on record i.e. information/documents obtained from the complainant and the Ministry of Corporate Affairs' website i.e. 'MCA 21 Portal' have been perused. On an examination of the same, it is observed that –
Page 4 of 15 since the funds raised are in excess of ₹16 Crores and also in view of the comparative number of investors in past years.
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Source: SecMarx — sebi:WTM/SR/ERO/87/11/2014. 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.