Regulations
SEBI directs Shine India Infra Project not to mobilise fresh funds from investors

The company was engaged in fund mobilising activity from the public through offer of RPS without complying with the relevant provisions of the Companies Act. 1956 and provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008, says a SEBI Order on Shine India Infra Project

 

Market regulator SEBI (Securities Exchange Board of India) passed an interim order directing Shine India Infra Project Limited (SIIPL) and its directors not to mobilise fresh funds from investors. According to the SEBI Order, SIIPL and its Directors, viz. Sajahan Midya, Nasiruddin SK and Selim Mohammed SK are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities.
 
Also, SIIPL and its directors, are restrained from accessing the securities market for any purpose.
 
The SEBI Order has also asked for a strict accounting of the funds already collected and has directed the directors not to dispose of these funds.
 
The company was engaged in fund mobilising activity from the public through offer of Redeemable Preference Shares (RPS) without complying with the relevant provisions of the Companies Act 1956 and provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
 
Hence, SEBI feels that here is no other alternative but  to  take  recourse  through  an  interim  action  against  SIIPL  and  its  directors, for preventing that company from further carrying on with its fund mobilising activity under the Offer of Redeemable Preference Shares.
 
The SEBI Order continues with a show-cause notice to the company and its directors as follows:
 
“The prima facie observations contained in the Order are made on the basis of the material available   on   record i.e.  correspondences   exchanged   between   SEBI   and   SIIPL, complaints received by SEBI and information obtained from the MCA 21 Portal. In  this  context,  SIIPL  and  its  Directors  are  required  to  show cause as to why suitable directions/prohibitions under Sections 11(1), 11(4), 11A and 11B of  the  SEBI  Act  read  with  Section  73(2)  of  the  Companies  Act,  1956,  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 not to issue prospectus or any offer document or issue advertisement 
for  soliciting  money  from  the  public  for  the  issue  of  securities 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.”
 
The SEBI Order allows a personal hearing by saying, “SIIPL and its directors, may, within 21 days from the date of receipt of this Order, file their replies, to this Order and may also indicate whether they desire to avail themselves an opportunity of personal hearing.”
 
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 SIIPL and its directors, in accordance with law.”
 

 

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COMMENTS

Vaibhav Dhoka

1 year ago

SEBI The watchdog should give data about orders passed and their execution and amount of investors money paid back.SEBI just boast itself by passing such orders as shedding crocodile tears that it stands for investors safety.

SEBI directs Suraksha Agrotech Industries to refund money collected 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 the SEBI Order

 

Market regulator SEBI (Securities Exchange Board of India) directed Suraksha Agrotech Industries to refund money collected from investors through the issue of RPS (Redeemable Preference Shares). The refund direction is commonly issued to Suraksha Agrotech and its directors Ranjit Daspattanayak, Barun Kumar Nandi, Indranil Das, Arunabha Mukhopadhyay, Akhil Chandra Saha and Subrata Das. The SEBI Order to refund also includes an interest of 15% per annum compounded at half yearly intervals, from the date when the repayments became due  to the investors till the date of actual payment.
 
The company and its directors are prohibited from accessing the securities market/ capital market uptil a period of four years after the completion of the refund process, according to the SEBI Order.
 
The company was engaged in fund mobilizing activity through issue of Redeemable Preference Shares to more than 49 persons without complying with the provisions of the Companies Act, 1956, according to the SEBI Order.
 
The SEBI Order notes with regret that the interim order was ignored by the company.  The interim order had directed the company and its directors to provide relevant and necessary information, as sought in SEBI letters dated July 26, 2013 and February 05, 2014. Though the Company, in its  letter  dated  August  14,  2013,  sought  extension  of  twenty  days  to  furnish  the information/  documents,  it  failed  to  do so. Thereafter, a reminder was sent in a SEBI letter dated February 05, 2014 to the registered office as well as the head office of the Company. However, these letters were returned undelivered. As on date, the SEBI Order points out that the company has failed to submit information/documents, as has been directed in the interim order.
 
Hence, the final SEBI Order directing the company to close the mobilising activity and make the refund for money already collected.
 
To make sure there is sufficient investor awareness on the refund order from SEBI, the SEBI Order specifies, “The company and its promoters and directors shall issue public notice, in all editions of two National Dailies  (one  English  and  one  Hindi) and  in  one local  daily  (in  Bengali) with  wide circulation,  detailing  the modalities  for  refund, including  details of contact  persons  including names, addresses and contact details, within fifteen days of this Order coming into effect.”
 
The SEBI Order concludes by saying, “This Order is without prejudice to any action, including adjudication and prosecution proceedings that might be taken by SEBI in respect of the above violations committed by the company, its promoters, directors and other key persons.”
 

User

COMMENTS

Vaibhav Dhoka

1 year ago

SEBI The watchdog should give data about orders passed and their execution and amount of investors money paid back.SEBI just boast itself by passing such orders as shedding crocodile tears that it stands for investors safety.Pity Indian investors.

Nifty, Sensex may be headed lower: Wednesday closing report
If Nifty closes below 8220, it will be under pressure
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex are struggling to head higher and that Nifty will remain in an uptrend as long as it is above 8,150. As expected the major indices in the Indian stock markets were moving sideways through the day and closed with marginal losses. Bulls were not able to move in large numbers with their value buying.
 
The trends in the major indices through the day are given in the table below:
 
 
 
A sudden fall in the Chinese markets and caution over the ongoing quarterly results, coupled with profit booking, led the major indices of the Indian equities markets to close flat after falling a bit in the post-noon session on Wednesday. Both the bellwether indices ceded their initial gains, as investors were seen reluctant to chase higher prices. By the end of the day, additional factors leading to subdued Indian stock markets include diminishing hopes of a European stimulus package and heightened chances of a US rate hike.
 
The Indian rupee too lost strength in the day's trade. It was down seven paisa at 65.13 to a US dollar from its previous close of 65.06 to a greenback. Both the domestic institutional investors (DIIs) and the foreign institutional investors (FIIs) were net sellers in the day's trade. According to data with stock exchanges, the DIIs sold stocks worth Rs.138.73 crore and the FIIs off-loaded scrip worth Rs.48.33 crore on Wednesday.
 
Analysts pointed out that investors' confidence was eroded as caution built up over the possibility of a US rate hike this month, diminishing hopes of European Central Bank (ECB) extending its stimulus package and receding Chinese markets. 
 
On Tuesday, the US housing data revealed a rise of 6.5% in ground breaking activity which stood at 1.21 million units in September from 1.13 million units in August. The data which showed a pickup in economic activity spooked investors as it can push the US Fed to raise interest rates in October.
 
The US Fed will decide whether to raise rates during its Federal Open Market Committee (FOMC) meet on October 27-28. The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.
The ECB will conduct its monetary policy meeting on Thursday.
 
In Asia, the Chinese equities retreated from an eight-week high to end the day with losses of over 3%. China's Shanghai Composite index declined by 3.47%.
 
Sector-wise, S&P BSE capital goods index plunged by 166.22 points, banking index receded by 156.18 points, healthcare index plummet by 142.16 points, oil and gas index fell by 50.56 points and reality index shed 25.99 points.
 
The S&P BSE metal index surged by 87.17 points, automobile index augmented by 50.15 points and information technology (IT) index gained by 47.80 points.
 
The top gainers and top losers of the indices are given in the table below:
 
 
The closing values of major Asian indices are given in the table below:
 
 

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