TMI Blog2017 (4) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... erit. In fact, the IDBI Trustee in its letter dated November 27, 2014 confirmed that though the appellant had taken their consent for acting as the trustee for the NCD issue aggregating an amount of ₹ 10 crore the appellant had issued the same in tranches without even any intimation to them. It was also stated by the IDBI Trusteeship that the appellant has defaulted on various other compliances particularly with respect to timely payment of quarterly interest and furnishing periodical information and reports and no responsible officer of the appellant was available in the company to ensure the compliances. Present appeal is squarely covered by the order of the Hon'ble Supreme Court in the Sahara [ 2012 (9) TMI 559 - SUPREME COU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und to the investors. 2. The appellant, Neesa Technologies Limited is an IT company. It is an admitted fact that during the financial year 2013-14 they issued NCDs worth ₹ 10 crore and collected ₹ 5.96 crore from 341 persons. 3. We have heard the arguments put forth by the Learned Counsel for appellant Shri R.K. Jha as well Shri Mustafa Doctor, the Learned Senior Counsel for the respondent SEBI. 4. The argument of the Counsel for the appellant is that the NCD issue was a private placement issued to only less than 50 persons at a time. The total number of subscribers come to 341 since they have issued multiple (8) tranches of NCDs. Being a private placement the respondent SEBI had no jurisdiction on the matter as Registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56. The argument that the appellant had engaged IDBI Trustee as custodian for the issue absolves them from the charge of violation has no merit. In fact, the IDBI Trustee in its letter dated November 27, 2014 confirmed that though the appellant had taken their consent for acting as the trustee for the NCD issue aggregating an amount of ₹ 10 crore the appellant had issued the same in tranches without even any intimation to them. It was also stated by the IDBI Trusteeship that the appellant has defaulted on various other compliances particularly with respect to timely payment of quarterly interest and furnishing periodical information and reports and no responsible officer of the appellant was available in the company to ensure the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rified in the order of Sahara (supra) as follows: ... ... that any share or debenture issue beyond forty nine persons, would be a public issue attracting all the relevant provisions of the SEBI Act, regulations framed thereunder, the Companies Act, pertaining to the public issue. ... . 7. Thus, the present appeal is squarely covered by the order of the Hon'ble Supreme Court in the Sahara (supra) matter and undoubtedly the appellant went for a public issue in a truncated manner. Given this the finding in the impugned order that the appellant company failed to comply with the provisions relating to public issue such as issue of prospectus, listing, provision of redemption reserve in terms of sections 56, 60, 73 and 117C of the Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
