Consumer Issues
ONGC, OIL exempted from burden of cooking gas subsidy
State-run oil and gas exploration companies have been exempted from sharing the subsidy on cooking gas for the current fiscal, a top official said on Tuesday.
 
"Government will fully meet subsidy burden of LPG in 2015-16," Petroleum Secretary Saurabh Chandra said at a roundtable on hydrocarbons organised by industry chamber FICCI here.
 
"This will leave a lot more money in the hands of the upstream companies to invest in exploration and production. This puts a huge pressure on them to step up the exploration and production activities," he added on the rationale behind the move.
 
Chandra said the government has exempted Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) from payment of fuel subsidy in the fourth quarter after the finance ministry agreed to make up for the revenue loss on subsidised fuel sales.
 
ONGC and OIL will have to bear subsidy on only kerosene in 2015-16, he added. After diesel was deregulated in October 2014, the subsidy sharing was limited to LPG and kerosene.
 
Both state oil companies would invest $6 billion in exploration and production during 2015-16, as they look to reverse the declining oil and gas production, Chandra said.
 
The finance ministry will pay Rs.5,324 crore in fuel subsidy for the January-March quarter, he added.

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SEBI bars Affiance Industries from collecting funds from investors
The company was engaged in fund mobilising activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956, according to a SEBI Order on Affiance Industries Limited
 
SEBI passed an order on Affiance Industries Limited directing the company not to mobilise funds from investors. Further, the company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, till further orders. The company and its directors shall not dispose off any of the properties of the company and shall not divert any funds raised from the public.
The company was engaged in fund mobilising activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956.
 
SEBI had received several complaints in October 2014, against Affiance Industries Limited (AIL) relating to illegal mobilisation of funds. Immediately SEBI wrote to AIL and started an investigation. Letters sent to AIL and its directors, were returned as undelivered with the remarks 'Refused', 'Unknown', etc. Subsequently, letters dated 8 December 2014, sent by SEBI to AIL's Directors i.e. Habib Sarkar and Lal Mahammad, were again returned as undelivered. Till date, no information has been received from any of the directors.
 
SEBI continued the investigation on its own and found that in the facts of the instant case, it prima facie appears that AIL has violated the provisions of Section 73 of the Companies Act, 1956, in respect of the Offer of Redeemable Preference Shares. AIL has made a public issue of shares and has not followed proper procedure to do so and it has also not got the shares listed in any stock exchange in the country.
 
The SEBI Member feels, “I am of the view that AIL is  prima facie engaged in fund mobilising activity from the public, through the Offer of  Redeemable Preference Shares and as a result of the aforesaid activity has violated the provisions of the Companies Act, 1956 (Section 56, Section 60 read with Section 2(36), Section 73).”
 
The SEBI Member concludes by saying, “The observations contained in this Order are made on the basis of the material available on record i.e. the complaints received by SEBI and information obtained from the Ministry of Corporate Affairs' website i.e. MCA 21 Portal. In this context, AIL and its directors are advised to show cause as to why suitable directions/prohibitions under Sections 11(1), 11(4), 11A and 11B of the SEBI Act including the following, should not be taken/imposed against them:
 
i. Directing them jointly and severally to refund money collected through the Offer of Redeemable Preference Shares along with interest, if any, promised to investors therein; 
 
ii.  Directing them to not issue prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, for an appropriate period; 
 
iii. Directing them to refrain from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.”

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Polaris Agro Industries barred from collecting funds from investors
The company was engaged in fund mobilising activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956, according to a SEBI Order on Polaris Agro Industries
 
SEBI passed an Order with respect to Polaris Agro Industries Limited directing that the company shall not mobilise funds from investors and that the company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, till further orders. The company and its directors shall not dispose off any of the properties of the company and shall not divert any funds raised from the public. 
 
The company was engaged in fund mobilising activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956.
 
SEBI had received several complaints in October 2014, against Polaris Agro Industries Limited (PAIL) relating to illegal mobilisation of funds. Immediately, SEBI wrote to the company and started an investigation. Letters sent to PAIL and its directors i.e. Jafar Ali Molla and Arindam Dutta, were returned as undelivered with the remarks 'Addressee Not available/Addressee Moved'. However, the letter to Kartick Chandar Das was delivered. Subsequently, letters dated 12 January 2015 were sent by SEBI to PAIL and its directors. While the letters sent to PAIL and its Directors i.e. Jafar Ali Molla and Arindam Dutta, were again returned as undelivered with the remarks 'Refused – Return to Sender & Addressee Moved', the letter to Kartick Chandar Das was delivered. However, till date, no information has been received from PAIL or its directors.
 
SEBI investigated on its own and found that the Offer of Redeemable Preference Shares by PAIL, would prima facie qualify as a public issue under the first proviso to Section 67(3) of the Companies Act, 1956. In this regard, it is pertinent to note that by virtue of Section 55A of the Companies Act, 1956, Section 67 of that Act, so far as it relates to issue and transfer of securities, shall also be administered by SEBI.
 
The SEBI Member continues by saying, “it will follow that since the Offer of Redeemable Preference Shares is a public issue of securities, such securities shall also have to be listed on a recognised stock exchange, as mandated under Section 73 of the Companies Act, 1956. In this regard, reference is made to Sections 73 of the Companies Act, 1956, of which sub-Sections (1), (2) and (3) are relevant.”
 
Hence, the SEBI Order infers, “In the facts of the instant case, it prima facie appears that PAIL has violated the provisions of Section 73 of the Companies Act, 1956, in respect of the Offer of Redeemable Preference Shares.”
 
Hence, the SEBI Order goes on to bar the company from mobilising funds from investors as indicated in the earlier paragraphs.
 
The SEBI Order concludes by saying, “The prima facie observations contained in this Order are made on the basis of the material available on record i.e. the abovementioned complaints received by SEBI and information obtained from the Ministry of Corporate Affairs' website i.e. MCA 21 Portal. In this context, PAIL and its abovementioned Directors are advised to show cause as to why suitable directions/prohibitions under Sections 11(1), 11(4), 11A and 11B of the SEBI Act including the following, should not be taken/imposed against them: 
 
i.  Directing them jointly and severally to refund money collected through the Offer of Redeemable Preference Shares along with interest, if any, promised to investors therein; 
 
ii.  Directing them to not issue prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly, for an appropriate period; 
 
iii.  Directing them to refrain from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.”

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COMMENTS

Jiarul shaikh

2 years ago

Polaris agro indastris ltd chted the company please arist or diracter thanku

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