Skylark Land Developers and Infrastructure India had launched Collective Investment Schemes without obtaining certificate of registration from SEBI
Skylark Land Developers and Infrastructure India Limited having its registered office at Gwalior, Madhya Pradesh has been directed not to collect any fresh money from investors from its existing scheme by a SEBI Order.
The SEBI Order inter-alia directed the company and its directors viz. Dilip Kumar Jain, Ram ShakarYadav, Durga Prasad Yadav, Jaihind Kumar and Anand Kumar Gupta not to launch any new scheme/plan or float any new companies to raise fresh moneys. The company is not allowed to dispose of any of the properties or alienate the assets of the existing scheme. It is not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of the company.
According to the SEBI Order, the company is required to immediately submit the full inventory of the assets owned by Skylark Developers out of the amounts collected from the "customers"/investors under its existing schemes. It is required to furnish all the information sought by SEBI (vide letter dated November 22, 2012), within 15 days of the receipt of this Order including: scheme wise list of investors and their contact numbers and addresses; the details of amount mobilized and refunded till date; and sample copies of all the documents pertaining to scheme including the documents/ agreements/ contracts executed with the "customers"/ investors.
The company had launched Collective Investment Schemes without obtaining certificate of registration from SEBI.
The company was engaged in fund mobilising activity through issue of Redeemable Preference shares to more than 49 persons without complying with the relevant provisions
Securities and Exchange Board of India (SEBI), has passed an interim order dated 15 December 2014 in the matter of Mondal Construction Company Limited, directing that the company shall not 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, in any manner whatsoever, either directly or indirectly, till further orders.
The company and its directors are also restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions.
The company and its directors have further been directed not to dispose off any of the properties or alienate or encumber any of the assets of the Company without prior permission of SEBI and not to divert any funds raised from public at large through the offer of Redeemable Preference shares, which are kept in bank accounts and in the custody of the company.
The company was engaged in fund mobilising activity through issue of Redeemable Preference shares to more than 49 persons without complying with the relevant provisions.
The amended Companies Act provides for severe punishment for those raising illegal deposits from the public
The Lok Sabha on Wednesday passed the amended Companies Act that prescribes specific punishment for those who raise deposits illegally from the public.
The amendments to the Companies Act, 2013, which came into effect from 1st April this year, have been proposed in order to address some issues raised by stakeholders.
"Now, after the provisions were implemented... while enforcing the provision, we found that there were certain difficulties with regard to the enforcement of certain provisions or certain errors, while drafting had taken place," Finance Minister Arun Jaitley had said while presenting the Bill.
Under the new norms proposed, the paid-up capital criteria has been scrapped, while threshold limits for various transactions for getting shareholders' nod has now been stipulated.
Another amendment approves prescribing specific punishment for deposits accepted, a condition that was left out in the act inadvertently, the ministry said.
Towards meeting a "corporate demand," an amendment proposes "prohibiting public inspection of Board resolutions filed in the registry".
Among the major concerns of stakeholders were protecting confidentiality of board resolutions, as well as the provision of auditors being required to report suspected frauds at the companies audited by them.
Stakeholders were also concerned that stringent regulations for related party transactions, or those transactions between the company and another in which a board member or members are interested, could hurt routine business activity.
The amendment also proposes to exempt corporates from the need to get shareholders' nod in the case of related party transactions valued lower than Rs100 crore or 10% of net worth.
Under the old system, shareholders' permission through a special resolution was required in case of related party transactions for all firms with a paid up capital of Rs10 crore or more.
Another amendment exempts related party transactions between holding companies and wholly owned subsidiaries from the requirement of approval of non-related shareholders. "In doing so, it seeks to partly align the requirements of the Act with the SEBI requirements whereas in some other aspects, it has sought to provide greater relaxation as compared to the SEBI requirements," KPMG said about the provision.
On the question of areas of concern still to be addressed in the Companies law, KPMG said, "Areas such as related party transactions, inter-corporate loans, and fraud reporting have had corporates struggling for a while now, trying to balance compliance with the new requirements without hampering business requirements. Some of these amendments will provide the necessary relief to corporates, and also bring certainty to certain other relaxations that were earlier provided through the rules accompanying the Act."