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2016 (8) TMI 1384 - Board - Companies LawRepayment proposal submitted by HBN - Previous default by company for non repayment - repayment proposal that HBN has now proposed is a structured repayment mechanism which involves setting up an independently managed ring fenced Special Purpose Entity (“SPE”) in the nature of a trustee company as a corporate registered under the Indian Trust Act, 1882 - Held that:- SEBI has been assigned the statutory duty to protect the interests of investors in securities and regulating the market by such measures as it deems fit. It is the duty of SEBI to ensure that the securities market functions in a fair manner. HBN failed to take any concrete steps for all these years to repay the investors’ money despite its own earlier repayment proposal in 2013. The past malafide conduct of the company was clearly noted. Almost 20 lacs investors of HBN are desperately waiting to get their money back. The company’s intentions have been malafide right from the very beginning till now. This is illustrated by HBN’s raising of funds in a blatantly illegal manner, flouting the directions of SEBI in respect of repayments to be made only through the escrow account, ‘repaying by cash’ to a huge extent of ₹ 192.96 crores, the source of which remains unexplained even after 2 years etc.. This new proposal is nothing but a ploy to drag on the matter without any reasonable end in sight. Order:- In view of the foregoing, in exercise of the powers conferred upon me in terms of Section 19 read with Sections 11 and 11B of the SEBI Act, 1992 hereby reject the repayment proposal submitted by HBN.
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