sebi:WTM/SR/ERO/BLO/50/03/2015
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Facts / Headnote
Interim prohibitory directions issued against AWVL and its directors; show-cause notice issued
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
- Adarsh Wealth Ventures Limited (AWVL)
- Shri Bijaya Kumar Rout
- Shri Gangadhar Nayak
- Shri Ganeswar Mahanta
- Shri Dipak Kumar Mohanty
- Shri Ramakanta Mahakul
- Shri Anil Singh
- Shri Choudhury Niranjan Pradhan
- Shri Bibhuti Bhusan Nanda
Holding
AWVL's issuance of 27% Cumulative Redeemable Preference Shares to 4,268 investors (raising Rs. 14,28,90,600) was prima facie a public issue under the first proviso to Section 67(3) of the Companies Act, 1956, and AWVL prima facie violated Sections 56, 60 read with 2(36), and 73 of that Act. SEBI issued interim directions restraining AWVL and its directors from mobilizing further funds, accessing the securities market, and disposing of assets.
Full text
Page 2 of 15 a. Date of opening and closing of the subscription list for the said debentures/ preference shares; b. Details regarding the number of application forms circulated inviting subscription for debentures/preference shares; c. Details regarding the number of applications received; d. Details regarding the number of allottees and list of such allottees; e. Number of debentures/preference shares allotted and value of such allotment against each allottee's name. f. Details regarding subscription amount raised; g. Date of allotment of the debenture/preference shares; h. Copies of the minutes of Board/Committee meeting in which the resolution has been passed for allotment; i. Date of dispatch of debenture/preference shares certificates etc.; j. Details of the total number of applicants for each of its scheme besides the list of final allottees; k. Copies of application forms, pamphlets, advertisements and other promotional material circulated for issuance of debentures/preference shares; l. Terms and conditions of the issue of debentures/preference shares; vii. Other information in respect of schemes launched for raising funds.
Page 3 of 15 3. I have perused the material available on record i.e. the complaint received by SEBI and documents contained therein, information obtained from EoW and information obtained from the Ministry of Corporate Affairs' website i.e. 'MCA21 Portal'. On an examination of the same, it is observed that –
Page 4 of 15 ADARSH WEALTH VENTURES LIMITED Additional Chief Judicial Magistrate(Special), Cuttack 162(1) 26/05/2014 Prosecution Initiated ADARSH WEALTH VENTURES LIMITED Additional Chief Judicial Magistrate(Special), Cuttack 220(3) 26/05/2014 Prosecution Initiated
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Source: SecMarx — sebi:WTM/SR/ERO/BLO/50/03/2015. 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.