sebi:WTM/SR/WRO/RLO/110/06/2015
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Facts / Headnote
Interim prohibitory directions issued; show cause notice issued as to why further directions including refund with interest 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)
Regulations
- Reg. 201
Parties
- AVM (CIN:U70100CT2010PLC021677; PAN:AAICA3913D)
- Shri Rajeshwar Prasad Dwivedi (DIN:02973616; PAN:AGFPD9237P)
- Shri Anil Kumar Sahu (DIN: 02973628; PAN:CILES0387K)
- Shri Mahendra Kumar Sahu (DIN:06471851; PAN:CQDPS7744E)
- Shri Ashutosh Dwivedi (DIN: 02973639; PAN:ATWPD6907G)
Holding
AVM's Offer of Redeemable Preference Shares, having been made to more than 50 persons, prima facie qualifies as a public issue under Section 67(3) of the Companies Act, 1956, and AVM has prima facie violated Sections 56, 60 read with 2(36), and 73 of that Act. SEBI accordingly issues interim directions restraining AVM and its directors from mobilizing further funds, accessing the securities market, and disposing of assets, and issues a show cause notice.
Full text
Page 2 of 14 2.4 AVM vide letters dated May 20, 2014 and May 21, 2014 inter alia submitted details indicating the preference share application money received, present preference share applicants, repayment made to preference share applicants, copies of bank statement, some land registration documents and copies of receipts/cheques issued to investors towards refund of share application money.
Page 3 of 14 2.6 AVM vide letter dated August 14, 2014 inter alia stated that it had collected 156 preference share applications and returned the share application money to 112 applicants. AVM further stated that as currently they have only 44 applicants, which as per SEBI Regulation 2013 is less than 50, they should not be subject to any further investigation from SEBI.
Page 4 of 14 application money pending allotment “As at 31 March 2013, the Company has received an amount of `63,50,500/- towards share application money towards 6,35,050 preference shares of the Company (As at 31 March 2012 ` 58,30,000/- towards 5,83,000 preference shares) at a premium of ` NIL….. The share application money was received pursuant to an invitation to offer shares and in terms of such invitation, the Company is required to complete the allotment formalities by 31 December 2014……”
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Source: SecMarx — sebi:WTM/SR/WRO/RLO/110/06/2015. 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.