Regulations
SEBI bars Equinox Infratech from raising funds through NCRSDs

The company was found engaged in fund mobilising activity through issue of NCRSDs to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956 and SEBI (Issue and Listing of Debt Securities) Regulations, 2008, according to the SEBI Order

 

SEBI, in its Order on Equinox Infratech Limited, directed that the company shall forthwith cease to mobilise any fresh funds from investors through the offer of Non-Convertible Redeemable Secured Debentures (NCRSDs) or through the issuance of equity shares or any other securities to the public and/or invite subscription.
 
The company and its directors viz. Prabir Chakraborty, Prasanta Chakraborty, Sandeep Chatterjee, Rahul Kumar Shahi and Nandalal Balti are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, and are restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in the securities market, according to the SEBI Order.
 
The Debenture Trust namely Equinox Debenture Trust (represented by its trustee viz. Arpita Chakraborty), is prohibited from continuing with her present assignment as a debenture trustee in respect of the Offer of NCRSDs of the company and also from taking up any new assignment or involvement in any new issue of debentures.
 
The company was found engaged in fund mobilising activity through issue of NCRSDs to more than 49 persons without complying with the relevant provisions of the Companies Act, 1956 and SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
 
SEBI had received a complaint dated 25 July 2013 alleging that Equinox Infratech Limited is illegally raising money from the general public through the issuance of debentures. The complainant also provided a copy of brochure-cum-application for the issuance of Non–Convertible Redeemable Secured Debentures (‘NCRSDs’) by Equinox. SEBI vide e-mail dated 25 August 2013 received one more complaint against Equinox Group alleging the illegal raising of funds by them.  SEBI started an investigation and found out that the company was involved in a public issue activity.
 
SEBI found Equinox’s claim, "We would like to bring to your attention that we have issued debentures of the company purely on a private placement basis," as false. SEBI also conducted physical verification of Equinox's registered office address at Gwalior on 15 October 2014. During the visit it was noted that the company did not exist at the given address.
 
Efforts were also made by SEBI to obtain information on Equinox from Ministry of Corporate Affair's Website i.e. MCA21 portal.
 
The SEBI Order inferred from the investigation, “from the abovementioned, it will follow that since the Offer of NCRSDs 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 for the instant case…”
 
As the company had not registered its prospectus with the RoC (Registrar of Companies), the SEBI Order made it clear, “In view of the same, I find that prima facie, Equinox has not complied with the provisions of Section 60 of Companies Act, 1956.”
 
SEBI, in its investigation, also found that Equinox Debenture Trust (represented by its trustee viz.  Arpita Chakraborty) has prima facie, failed to meet the eligibility criteria specified under the provisions of the Debenture Trustees Regulations and therefore, has acted as unregistered Debenture Trustees, which amounts to violation of the abovementioned provisions of the SEBI Act read with the Debenture Trustee Regulations.
 
On the debenture redemption reserve requirement, the SEBI Order observed, “Further, under Section 117C of the aforesaid Act, where a company issues debentures, it shall create a debenture redemption reserve for the redemption of such debentures, to which adequate amounts shall be credited, from out of its profits every year until such debentures are redeemed. Based on the material available on record, I find that Equinox has not complied with the provisions of Sections 117C of the Companies Act, 1956 and therefore, has prima facie violated the aforesaid provisions.”
 
As the violations by the company are severe, SEBI has issued the Order with strict restrictions. SEBI plans a refund of money already collected and says in its Order, “In this context, Equinox 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:  Directing them jointly and severally to refund money collected through the Offer of NCRSDs along with interest, if any, promised to investors.”
 
Finally, the SEBI Order concludes by saying, “This Order is without prejudice to the right of SEBI to take any other action that may be initiated against Equinox and its abovementioned Directors; its Debenture Trustee, viz. Equinox Debenture Trust (represented by its trustee viz. Arpita Chakraborty), in accordance with law.”
 

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PM urges RBI to prepare roadmap for 'financial inclusion' by 2035
Prime Minister Narendra Modi on Thursday urged the Reserve Bank of India (RBI) to prepare a road-map for "financial inclusion" ahead of its centenary year in 2035.
 
"The RBI will be completing 100 years in 2035 and it will be appropriate for it to work on financial inclusion and prepare a roadmap to achieve it," Modi said, attending the 80th anniversary celebrations of the apex bank in Mumbai.
 
In addition to the RBI's centenary, he said other milestones to achieve financial inclusion could be the 150th birth anniversary of Mahatma Gandhi in 2019, the 75th year of Indian independence in 2022, and the RBI's 90th anniversary in 2025.
 
He said these were four important dates to create a roadmap for financial inclusion, which should not remain just a government programme, but become an 'article of faith.'
 
The prime minister also suggested that banks should be considerate in extending loans to the poor and while making recoveries, especially from the farming community.
 
Expressing concern at the plight of the poor and farmers' suicides, he said these should "shake up the conscience of the banking sector".
 
"Our poor farmers commit suicide... This pain should not only be restricted to the media. When a farmer dies, does it shake the heart of the banking sector? Only because he has taken loan from a moneylender, he has to face death," Modi said.

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Over 350 return home from Yemen, wary of future
Over 350 Indians were safely airlifted from strife-torn Yemen, but the returnees on Thursday were apprehensive about their future and hoped they would land jobs.
 
India sent its biggest plane, the C-17 (Globemaster), to evacuate its nationals, 190 of whom landed in Mumbai on Thursday while another 168 went to Kochi in Kerala.
 
Fighting has been going on in Yemen since January 22 when the government under President Abd-Rabbu Mansour Hadi was ousted by Shia Houthi forces. This has provoked the recent military campaign by a coalition of 10 countries led by Saudi Arabia.
 
India has initiated a highly coordinated operation to evacuate its nationals and around 350 people stranded in Yemen's port city of Aden were brought out by Indian Navy Ship INS Sumitra.
 
The returnees were happy to be back home, but were concerned about their future.
 
"We are really happy to be with our near and dear ones," said a nurse who was elated over her safe return in Kochi.
 
"The bigger question is what will happen to our future... We want a job, but do not know where it will come from, as we have families to look after," said the nurse.
 
The number of Indian nationals in Yemen, which was estimated around 14,000 in 2010, declined to an estimated 5,000 by June 2011 following political instability and violence in the country. However, only around 3,000 Indians are registered with the embassy in Sana'a. 
 
Most of the Indians living in Yemen comprise nurses, hospital staff, university professors, professionals, white collar workers, IT professionals and managerial and clerical staff in the private sector. A vast majority of them hail from Kerala but a few belong to other states like Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, Punjab, Uttar Pradesh, Bihar and West Bengal.
 
Kerala's Minister for Diaspora K.C. Joseph told IANS that they are in constant touch with the ministry of external affairs in Delhi and with the Indian officials in Yemen and Djibouti.
 
"Diplomatic efforts managed to break ice with Saudi Arabian authorities to clear the way for a free air zone to ensure our flights land in Yemen and then return through their air space.
 
"But talks with Iranian authorities are on as their permission is also required. There are another 2,500 Keralites including nurses and teachers," said Joseph.
 
The Kerala government has given a token amount of Rs.2,000 to each of them.
 
Recalling the horror, a returnee said: "The situation in Yemen is getting worse day by day as there are frequent bombings. Bombs were dropped around 200 metres from where I stayed. The most affected are the children." 
 
Another returnee said: "Communications are also breaking down and then it becomes tough for Indian Embassy officials to get in touch with Indians." 
 
Joseph said the state government will press the central government to ensure that diplomatic talks are held to ensure the return of Indians.
 
"Another tough ask is that nobody knows how many Keralites are there in Yemen. But the Kerala government will do its best to see how best we can help the nurses," Joseph said.
 
He said his government will look into providing jobs to the nurses who have returned.
 
"There are practical difficulties to find jobs for around 2,000 nurses, but our government will do everything possible," said Joseph.
 
India has also agreed to requests from neighbours Bangladesh and Sri Lanka to assist in evacuation of their nationals from Yemen.

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COMMENTS

Naveen gowda

2 months ago

This company is not refunding the money to the public investors as orderd by RBI,
How to claim ?
Any help please

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