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WTM/SR/ERO/57/08/2014

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI
CORAM: S. RAMAN, WHOLE TIME MEMBER

ORDER

U!"# S"$%&'( 11, 11)4*, 11A +! 11B ', %-" S"$.#&%&"( +! E/$-+0" B'+#! ', I!&+ A$%,
1112, & %-" 2+%%"# ', M+0'/ I,#+3#'4"$%( L&2&%"! +! &%( D&#"$%'#(, 5&6. S-#& D&3+7+#
D+( )DIN: 08922954*, S-#& S.!&3 R+.%- )DIN: 09749408*, S-#& D":+(&(- D":+%- )DIN:
09775849*, S-#& S+2#+% B&7+(- B+#.+ )DIN: 09775841*, S-#& ;&2 C"% <+= )DIN:
09775851* +! S-#& <.#"!. S"7-+# H+=!"# )DIN: 09789189*.


1. Securities and Exchange Board of India ("SEBI") received a copy of Writ Petition No.
13997 of 2014 Ashru L. Das vs. UO ! Others "#a$%utta &igh #ourt', wherein it was stated
inter a$ia that Magnox Infraproects !i"ited ("MIL") was "o#i$i%ing funds through issue
of redee"a#$e preference shares ("R<S('.

&.1 'hereafter, SEBI vide $etters each dated (une &), &)1*, advised MI! a$ongwith its
+irectors to furnish inter a$ia the fo$$owing infor"ation within 1, days fro" the date of
receipt of the aforesaid $etter, vi%. -

i. .opy of the Me"orandu" and /rtic$es of /ssociation of the co"pany0
ii. .opy of /udited /nnua$ /ccounts of the co"pany for the $ast 1 years0
iii. .opies of /nnua$ 2eturns fi$ed #y the co"pany for the $ast 1 years0
iv. 3a"e, addresses and occupation of a$$ the pro"oters4directors of the co"pany0
v. 3a"es and detai$s of the 5ey Manageria$ 6ersonne$ of the co"pany0
vi. 7ther infor"ation in respect of issue of preference shares4de#entures, vi%. -
a. .opy of 6rospectus42ed 8erring 6rospectus4State"ent in $ieu of
6rospectus4Infor"ation Me"orandu" fi$ed with 2egistrar of .o"panies
("ROC")0
#. .onfir"ation of having "ade an /pp$ication for $isting0
c. .opy of 9or" & and 9or" 1) fi$ed with 27.0
d. +ate of opening and c$osing of the su#scription $ist0
e. +etai$s regarding the nu"#er of app$ication for"s circu$ated inviting
su#scription0
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f. +etai$s regarding the nu"#er of app$ications received0
g. +etai$s regarding the nu"#er of a$$ottees and $ist of such a$$ottees, etc.0
h. 3u"#er of preference shares4de#entures a$$otted and va$ue of such a$$ot"ent
against each a$$ottee:s na"e.
i. +etai$s regarding su#scription a"ount raised0
. +ate of a$$ot"ent of preference shares4de#entures0
;. .opies of the "inutes of Board4.o""ittee "eeting in which the reso$ution has
#een passed for a$$ot"ent0
$. +ate of dispatch of preference shares4de#entures .ertificates0
". +etai$s of the tota$ nu"#er of app$icants for each of MI!:s sche"e #esides the
$ist of fina$ a$$ottee0
n. .opies of app$ication for"s, pa"ph$ets, advertise"ents and other pro"otiona$
"ateria$ circu$ated for issuance of preference shares4de#entures0
o. 'er"s and conditions of the issue of preference shares4de#entures0
p. +etai$s of de#enture trustee, etc.

&.& 8owever, the a#ove"entioned $etters, which inter a$ia was forwarded to the 2egistered
7ffice of MI!, returned unde$ivered (in except in the case of one +irector of MI! i.e.
Shri Sudip 2auth, who vide rep$y received in SEBI on (u$y 1), &)1*, stated that he had
$eft MI! since &)1&).

1. 'he "ateria$ avai$a#$e on record i.e. infor"ation o#tained fro" the Ministry of
.orporate /ffairs: we#site i.e. )*#A 21 Porta$) a$ongwith docu"ents annexed with the
Writ Petition No. 13997 of 2014 Ashru L. Das vs. UO ! Others "#a$%utta &igh #ourt'+ have
#een perused. 7n an exa"ination of the sa"e, it is o#served that -

i. MI! was incorporated on 7cto#er &<, &)11, with the 27., 5o$;ata, =est Benga$
with .I3 3o. as >*,*))=B&)116!.1?<@11. MI!:s 2egistered 7ffice is at
.hand#eria, Mecheda Bye 6ass, near .handi Mandir .ontai, 6ur#a Medinipur,
.ontai, =est Benga$-A&1*)1, India.

ii. 'he +irectors in MI! are Shri +ipan;ar +as, Shri +e#asish +e#nath, Shri Sa"rat
Bi;ash Barua, Shri Bi" .ent 6a$ and Shri 6urnendu Se;har 8a$der. /s regards Shri
Sudip 2auth, it is however, o#served fro" the *#A 21 Porta$ that he has #een
indicated as a +irector in MI!.
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iii. MI! issued (,e-ee.a/$e Preferen%e 0hares( ((<#","#"$" S-+#"( I((."() during the
9inancia$ Cear &)1&-11, detai$s of which are provided #e$ow -


*.1 In the context of the a#ove"entioned detai$s of the Preferen%e 0hares ssue, the issue for
deter"ination in the instant "atter is whether the "o#i$i%ation of funds #y MI! through
the aforesaid, is in accordance with the provisions of the SEBI /ct, 1@@& ("SEBI A$%")0
the .o"panies /ct, 1@,? read with the .o"panies /ct, &)11.

*.& I note that the urisdiction of SEBI over various provisions of the .o"panies /ct in the
case of pu#$ic co"panies, whether $isted or un$isted, when they issue and transfer
securities, f$ows fro" the provisions of Section ,,/ of the .o"panies /ct. =hi$e
exa"ining the scope of Section ,,/ of the .o"panies /ct, 1@,?, the 8on:#$e Supre"e
.ourt of India in S+-+#+ I!&+ R"+= E(%+%" C'#3'#+%&' L&2&%"! > O#(. 5(. SEBI
)C&5&= A33"+= '. 1818 ', 2011* )?.!02"% !+%"! A.0.(% 81, 2012* (hereinafter
referred to as the "S+-+#+ C+("")+ had o#served thatD

(We+ therefore+ ho$- that+ so far as the 1rovisions enu.erate- in the o1ening 1ortion of 0e%tion 22A of
the #o.1anies A%t+ so far as the3 re$ate to issue an- transfer of se%urities an- non41a3.ent of -ivi-en- is
%on%erne-+ 056 has the 1o7er to a-.inister in the %ase of $iste- 1u/$i% %o.1anies an- in the %ase of
those 1u/$i% %o.1anies 7hi%h inten- to get their se%urities $iste- on a re%ogni8e- sto%9 e:%hange in n-ia.(

*.1 In this regard -

i. 2eference is a$so "ade to Sections ?A(1) and ?A(1) of the .o"panies /ct, 1@,?,
which are reproduced as underD

@"+# TA3" ', S"$.#&%A D+%" ', A=='%2"% N'. ', A=='%%""(

T'%+= A2'.%
)& C#'#"(*
&)1& - 11 2edee"a#$e
6reference Shares
*.)<.&)1& &11) &.11
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(;7. "1' An3 referen%e in this A%t or in the arti%$es of a %o.1an3 to offering shares or -e/entures to
the 1u/$i% sha$$+ su/<e%t to an3 1rovision to the %ontrar3 %ontaine- in this A%t an- su/<e%t a$so to the
1rovisions of su/4se%tions "3' an- "4'+ /e %onstrue- as in%$u-ing a referen%e to offering the. to an3
se%tion of the 1u/$i%+ 7hether se$e%te- as .e./ers or -e/enture ho$-ers of the %o.1an3 %on%erne- or
as %$ients of the 1erson issuing the 1ros1e%tus or in an3 other .anner.
"2' ...
"3' No offer or invitation sha$$ /e treate- as .a-e to the 1u/$i% /3 virtue of su/4 se%tion "1' or su/4
se%tion "2'+ as the %ase .a3 /e+ if the offer or invitation %an 1ro1er$3 /e regar-e-+ in a$$ the
%ir%u.stan%es4
"a' as not /eing %a$%u$ate- to resu$t+ -ire%t$3 or in-ire%t$3+ in the shares or -e/entures /e%o.ing
avai$a/$e for su/s%ri1tion or 1ur%hase /3 1ersons other than those re%eiving the offer or invitation= or
"/' other7ise as /eing a -o.esti% %on%ern of the 1ersons .a9ing an- re%eiving the offer or invitation
>
<#'5&!"! that nothing %ontaine- in this su/4se%tion sha$$ a11$3 in a %ase 7here the offer or
invitation to su/s%ri/e for shares or -e/entures is .a-e to fift3 1ersons or .ore?
<#'5&!"! ,.#%-"# that nothing %ontaine- in the first 1roviso sha$$ a11$3 to non4/an9ing finan%ia$
%o.1anies or 1u/$i% finan%ia$ institutions s1e%ifie- in se%tion 4A of the #o.1anies A%t+ 192; "1 of
192;'.@

ii. =hi$e exa"ining the scope of Section ?A of the .o"panies /ct, 1@,?, the 8on:#$e
Supre"e .ourt of India in the 0ahara #ase o#served thatD

(0e%tion ;7"1' -ea$s 7ith the offer of shares an- -e/entures to the 1u/$i% an- 0e%tion ;7"2' -ea$s
7ith invitation to the 1u/$i% to su/s%ri/e for shares an- -e/entures an- ho7 those e:1ressions are to
/e un-erstoo-+ 7hen referen%e is .a-e to the A%t or in the arti%$es of a %o.1an3. Ahe e.1hasis in
0e%tion ;7"1' an- "2' is on the Bse%tion of the 1u/$i%@. 0e%tion ;7"3' states that no offer or
invitation sha$$ /e treate- as .a-e to the 1u/$i%+ /3 virtue of su/se%tions "1' an- "2'+ that is to an3
se%tion of the 1u/$i%+ if the offer or invitation is not /eing %a$%u$ate- to resu$t+ -ire%t$3 or in-ire%t$3+ in
the shares or -e/entures /e%o.ing avai$a/$e for su/s%ri1tion or 1ur%hase /3 1ersons other than those
re%eiving the offer or invitation or other7ise as /eing a -o.esti% %on%ern of the 1ersons .a9ing an-
re%eiving the offer or invitations. 0e%tion ;7"3' is+ therefore+ an e:%e1tion to 0e%tions ;7"1' an- "2'.
f the %ir%u.stan%es .entione- in %$auses "1' an- "/' of 0e%tion ;7"3' are satisfie-+ then the
offerCinvitation 7ou$- not /e treate- as /eing .a-e to the 1u/$i%.
Ahe first 1roviso to 0e%tion ;7"3' 7as inserte- /3 the #o.1anies "A.en-.ent' A%t+ 2000 7.e.f.
13.12.2000+ 7hi%h %$ear$3 in-i%ates+ nothing %ontaine- in 0u/4se%tion "3' of 0e%tion ;7 sha$$ a11$3
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in a %ase 7here the offer or invitation to su/s%ri/e for shares or -e/entures is .a-e to fift3 1ersons or
.ore. >
,esu$tant$3+ if an offer of se%urities is .a-e to fift3 or .ore 1ersons+ it 7ou$- /e -ee.e- to /e a
1u/$i% issue+ even if it is of -o.esti% %on%ern or 1rove- that the shares or -e/entures are not avai$a/$e
for su/s%ri1tion or 1ur%hase /3 1ersons other than those re%eive- the offer or invitation. >
.a3+ therefore+ in-i%ate+ su/<e%t to 7hat has /een state- a/ove+ in n-ia that an3 share or
-e/enture issue /e3on- fort3 nine 1ersons+ 7ou$- /e a 1u/$i% issue attra%ting a$$ the re$evant
1rovisions of the 056 A%t+ regu$ations fra.e- thereun-er+ the #o.1anies A%t+ 1ertaining to the
1u/$i% issue. >(

iii. In the instant "atter, for ascertaining whether the Preferen%e 0hares ssue is a pu#$ic
issue or an issue on private p$ace"ent #asis in accordance with Section ?A of the
.o"panies /ct, 1@,?, the nu"#er of su#scri#ers is of ut"ost i"portance.

a. >nder the Preferen%e 0hares ssue+ it is o#served that during the 9inancia$ Cear
&)1&-11, MI! a$$otted ,P0 on a sing$e day i.e. /ugust *, &)1&. 9urther, it is
o#served that MI! "ade such a$$ot"ent to a tota$ of &11) individua$s4investors
and "o#i$i%ed funds a"ounting to approxi"ate$y &.11 .rores. 'he aforesaid
facts 1ri.a fa%ie indicate that the Preferen%e 0hares ssue was a pu#$ic issue of
securities in $ight of the fact that the nu"#er of persons to who" such ssue was
"ade, was a#ove the $i"it of forty-nine persons as prescri#ed under Section
?A(1) of the .o"panies /ct, 1@,?.

#. MI! is not stated to #e a nonE#an;ing financia$ co"pany or a pu#$ic financia$
institution within the "eaning of Section */ of the .o"panies /ct, 1@,? and
therefore, is not covered under the se%on- 1roviso to Section ?A(1) of the
.o"panies /ct, 1@,?.

c. In view of the a#ove, the Preferen%e 0hares ssue #y MI! wou$d 1ri.a fa%ie Fua$ify as
a pu#$ic issue under the first proviso to Section ?A(1) of the .o"panies /ct,
1@,?. In this regard, it is pertinent to note that #y virtue of Section ,,/ of the
.o"panies /ct, Section ?A of that /ct, so far as it re$ates to issue and transfer
of securities, sha$$ a$so #e ad"inistered #y SEBI.

*.* I note that -
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i. 9ro" the a#ove"entioned, it wi$$ fo$$ow that since the Preferen%e 0hares ssue is a
pu#$ic issue of securities, such securities sha$$ a$so have to #e $isted on a recogni%ed
stoc; exchange, as "andated under Section A1 of the .o"panies /ct, 1@,?. In this
regard, reference is "ade to Sections A1 of the .o"panies /ct, 1@,?, of which su#E
Sections (1), (&) and (1) are re$evant for the instant case, which is reproduced as
underD

(73. "1' 5ver3 %o.1an3 inten-ing to offer shares or -e/entures to the 1u/$i% for su/s%ri1tion /3 the
issue of a 1ros1e%tus sha$$+ /efore su%h issue+ .a9e an a11$i%ation to one or .ore re%ognise- sto%9
e:%hanges for 1er.ission for the shares or -e/entures inten-ing to /e so offere- to /e -ea$t 7ith in the
sto%9 e:%hange or ea%h su%h sto%9 e:%hange.
"1A' >
"2' Where the 1er.ission has not /een a11$ie- un-er su/se%tion "1' or su%h 1er.ission having /een
a11$ie- for+ has not /een grante- as aforesai-+ the %o.1an3 sha$$ forth7ith re1a3 7ithout interest a$$
.one3s re%eive- fro. a11$i%ants in 1ursuan%e of the 1ros1e%tus+ an-+ if an3 su%h .one3 is not re1ai-
7ithin eight -a3s after the %o.1an3 /e%o.es $ia/$e to re1a3 it+ the %o.1an3 an- ever3 -ire%tor of the
%o.1an3 7ho is an offi%er in -efau$t sha$$+ on an- fro. the e:1ir3 of the eighth -a3+ /e <oint$3 an-
severa$$3 $ia/$e to re1a3 that .one3 7ith interest at su%h rate+ not $ess than four 1er %ent an- not
.ore than fifteen 1er %ent+ as .a3 /e 1res%ri/e-+ having regar- to the $ength of the 1erio- of -e$a3 in
.a9ing the re1a3.ent of su%h .one3.
"3' A$$ .one3s re%eive- as aforesai- sha$$ /e 9e1t in a se1arate /an9 a%%ount .aintaine- 7ith a
0%he-u$e- 6an9 1 Dunti$ the 1er.ission has /een grante-+ or 7here an a11ea$ has /een 1referre-
against the refusa$ to grant su%h. 1er.ission+ unti$ the -is1osa$ of the a11ea$+ an- the .one3
stan-ing in su%h se1arate a%%ount sha$$+ 7here the 1er.ission has not /een a11$ie- for as aforesai-
or has not /een grante-+ /e re1ai- 7ithin the ti.e an- in the .anner s1e%ifie- in su/4 se%tion "2'E=
an- if -efau$t is .a-e in %o.1$3ing 7ith this su/4 se%tion+ the %o.1an3+ an- ever3 offi%er of the
%o.1an3 7ho is in -efau$t+ sha$$ /e 1unisha/$e 7ith fine 7hi%h .a3 e:ten- to five thousan- ru1ees.@

ii. In the 0ahara #ase, the 8on:#$e Supre"e .ourt of India a$so exa"ined Section A1 of
the .o"panies /ct, 1@,?, wherein it o#served that -

(0e%tion 73"1' of the A%t %asts an o/$igation on ever3 %o.1an3 inten-ing to offer shares or
-e/entures to the 1u/$i% to a11$3 on a sto%9 e:%hange for $isting of its se%urities. 0u%h %o.1anies
have no o1tion or %hoi%e /ut to $ist their se%urities on a re%ogni8e- sto%9 e:%hange+ on%e the3 invite
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su/s%ri1tion fro. over fort3 nine investors fro. the 1u/$i%. f an un$iste- %o.1an3 e:1resses its
intention+ /3 %on-u%t or other7ise+ to offer its se%urities to the 1u/$i% /3 the issue of a 1ros1e%tus+ the
$ega$ o/$igation to .a9e an a11$i%ation on a re%ogni8e- sto%9 e:%hange for $isting starts. 0u/4se%tion
"1A' of 0e%tion 73 gives in-i%ation of 7hat are the 1arti%u$ars to /e state- in su%h a 1ros1e%tus.
Ahe %onseFuen%es of not a11$3ing for the 1er.ission un-er su/4se%tion "1' of 0e%tion 73 or not
granting of 1er.ission is %$ear$3 sti1u$ate- in su/4se%tion "3' of 0e%tion 73. O/$igation to refun- the
a.ount %o$$e%te- fro. the 1u/$i% 7ith interest is a$so .an-ator3 as 1er 0e%tion 73"2' of the A%t.
Listing is+ therefore+ a $ega$ res1onsi/i$it3 of the %o.1an3 7hi%h offers se%urities to the 1u/$i%+
1rovi-e- offers are .a-e to .ore than 20 1ersons.(

iii. In the facts of the instant case, since the Preferen%e 0hares ssue was "ade to fifty
persons or "ore #y MI!, the sa"e wi$$ attract the reFuire"ent of co"pu$sory $isting
#efore a recogni%ed stoc; exchange in ter"s of Section A1(1) of the .o"panies /ct,
1@,?. It therefore 1ri.a fa%ie appears that MI! has vio$ated the provisions of Section
A1(1) of the .o"panies /ct, 1@,?, since it has fai$ed to ensure $isting with a
recognised stoc; exchange of the securities issued under the Preferen%e 0hares ssue.

iv. /s per Section A1(&) of the .o"panies /ct, 1@,?, the o#$igation to refund the
a"ount with interest that was co$$ected fro" investors under the Preferen%e 0hares ssue
is "andatory on MI!. In this regard, there is no evidence on record to indicate
whether or not MI! has paid interest to the investors where such ,P0 are not
a$$otted within < days under the Preferen%e 0hares ssue+ as per the aforesaid Section. In
view of the sa"e, I find that MI! has 1ri.a fa%ie not co"p$ied with the provisions of
Section A1(&) of the .o"panies /ct, 1@,?.

v. Section A1(1) of .o"panies /ct, 1@,?, says that a$$ "oneys received sha$$ #e ;ept in
a separate #an; account "aintained with a Schedu$ed Ban; and if defau$t is "ade in
co"p$ying with this su#ESection, the co"pany, and every officer of the co"pany
who is in defau$t, sha$$ #e punisha#$e with fine which "ay extend to five thousand
rupees. In the instant case, there is no evidence on record to indicate whether or not
funds received fro" the investors under the Preferen%e 0hares ssue has #een ;ept in
separate #an; account #y MI!. In view of the sa"e, I find that MI! has 1ri.a fa%ie
not co"p$ied with the provisions of Section A1(1) of .o"panies /ct, 1@,?.

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*., >nder Section &(1?) read with Section ?) of the .o"panies /ct, 1@,?, a co"pany needs
to register its prospectus with the 27., #efore "a;ing a pu#$ic offer or issuing the
prospectus. /s per the aforesaid Section &(1?), B1ros1e%tus@ "eans any docu"ent
descri#ed or issued as a prospectus and inc$udes any notice, circu$ar, advertise"ent or
other docu"ent inviting deposits fro" the pu#$ic or inviting offers fro" the pu#$ic for
the su#scription or purchase of any shares in, or de#entures of, a #ody corporate. /s
"entioned a#ove, since the Preferen%e 0hares ssue was "ade to fifty persons or "ore, it has
to #e construed as a pu#$ic offer. 8aving "ade a pu#$ic offer, MI! was reFuired to
register a prospectus with the 27. under Section ?) of the .o"panies /ct, 1@,?. Based
on the "ateria$ avai$a#$e on record, I find that MI! has not co"p$ied with the provisions
of Section ?) of .o"panies /ct, 1@,?.

*.? >nder Section ,?(1) of the .o"panies /ct, 1@,?, every prospectus issued #y or on
#eha$f of a co"pany, sha$$ state the "atters specified in 6art I and set out the reports
specified in 6art II of Schedu$e II of that /ct. 9urther, as per Section ,?(1) of the
.o"panies /ct, 1@,?, no one sha$$ issue any for" of app$ication for shares in or
de#entures of a co"pany, un$ess the for" is acco"panied #y a#ridged prospectus,
contain disc$osures as specified. Based on the "ateria$ avai$a#$e on record, I find that
MI! has not co"p$ied with the provisions of Section ,?(1) and ,?(1) of the .o"panies
/ct, 1@,? and therefore, has 1ri.a fa%ie vio$ated the aforesaid provisions.

*.A /s per Section *?,(1) of the .o"panies /ct, &)11, the .o"panies /ct, 1@,?, (sha$$ stan-
re1ea$e-(. 8owever, Section *?,(&)(i) of the .o"panies /ct, &)11, provides thatD

("2' Not7ithstan-ing the re1ea$ un-er su/4se%tion "1' of the re1ea$e- ena%t.ents+G
"a' an3thing -one or an3 a%tion ta9en or 1ur1orte- to have /een -one or ta9en+ in%$u-ing an3 ru$e+
notifi%ation+ ins1e%tion+ or-er or noti%e .a-e or issue- or an3 a11oint.ent or -e%$aration .a-e or an3
o1eration un-erta9en or an3 -ire%tion given or an3 1ro%ee-ing ta9en or an3 1ena$t3+ 1unish.ent+
forfeiture or fine i.1ose- un-er the re1ea$e- ena%t.ents sha$$+ insofar as it is not in%onsistent 7ith the
1rovisions of this A%t+ /e -ee.e- to have /een -one or ta9en un-er the %orres1on-ing 1rovisions of this
A%t=(

*.< >pon a consideration of the afore"entioned paragraphs, I a" of the view that MI! is
1ri.a fa%ie engaged in fund "o#i$ising activity fro" the pu#$ic, through the Preferen%e
0hares ssue and as a resu$t of the aforesaid activity has vio$ated the afore"entioned
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provisions of the .o"panies /ct, 1@,? (Section ,?, Section ?) read with Section &(1?),
Section A1) read with Section *?, of the .o"panies /ct, &)11.

,. 6rotecting the interests of investors is the fore"ost "andate for SEBI. 9or this purpose,
SEBI can exercise its urisdiction under Sections 11(1), 11/, 11B and 11(*) of the SEBI
/ct read with Section ,,/ of the .o"panies /ct, 1@,? and Section *?, of the
.o"panies /ct, &)11, over co"panies who issue securities to fifty persons or "ore, #ut
do not co"p$y with the app$ica#$e provisions of the aforesaid .o"panies /cts. In the
instant "atter, steps have to #e ta;en to ensure on$y $egiti"ate fund raising activities are
carried on #y MI! and no investors are defrauded. In $ight of the sa"e, I find there is no
other a$ternative #ut to ta;e recourse through an interi" action against MI! and its past
and present +irectors, for preventing that co"pany fro" further carrying on with its
fund "o#i$ising activity under the Preferen%e 0hares ssue.

?. In view of the foregoing, I, in exercise of the powers conferred upon "e under Sections
11, 11(*), 11/ and 11B of the SEBI /ct, here#y issue the fo$$owing directions -

i. MI! sha$$ not "o#i$i%e funds fro" investors through the Preferen%e 0hares ssue or
through the issuance of eFuity shares or any other securities, to the pu#$ic and4or
invite su#scription, in any "anner whatsoever, either direct$y or indirect$y ti$$ further
directions0
ii. MI! and its +irectors, vi%. Shri +ipan;ar +as (+I3D )1?&&?,*), Shri Sudip 2auth
(+I3D )?A*?*)1), Shri +e#asish +e#nath (+I3D )?AA,<*?), Shri Sa"rat Bi;ash
Barua (+I3D )?AA,<*@), Shri Bi" .ent 6a$ (+I3D )?AA,<,1) and Shri 6urnendu
Se;har 8a$der (+I3D )?A<?@<?), are prohi#ited fro" issuing prospectus or any offer
docu"ent or issue advertise"ent for so$iciting "oney fro" the pu#$ic for the issue
of securities, in any "anner whatsoever, either direct$y or indirect$y, ti$$ further
orders0
iii. MI! and its a#ove"entioned +irectors, are restrained fro" accessing the securities
"ar;et and further prohi#ited fro" #uying, se$$ing or otherwise dea$ing in the
securities "ar;et, either direct$y or indirect$y, ti$$ further directions0
iv. MI! sha$$ provide a fu$$ inventory of a$$ its assets and properties0
v. 'he a#ove"entioned +irectors of MI! sha$$ provide a fu$$ inventory of a$$ their
assets and properties0
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Page 10 of 10

vi. MI! and its a#ove"entioned +irectors sha$$ not dispose of any of the properties or
a$ienate or encu"#er any of the assets owned4acFuired #y that co"pany through the
Preferen%e 0hares ssue, without prior per"ission fro" SEBI0
vii. MI! and its a#ove"entioned +irectors sha$$ not divert any funds raised fro" pu#$ic
at $arge through the Preferen%e 0hares ssue, which are ;ept in #an; account(s) and4or
in the custody of MI!.
viii. MI! and its a#ove"entioned +irectors sha$$, within &1 days fro" the date of receipt
of this 7rder, provide SEBI with a$$ re$evant and necessary infor"ation, as sought
vide SEBI $etter dated (une &), &)1*.

A. 'he a#ove directions sha$$ ta;e effect i""ediate$y and sha$$ #e in force unti$ further
orders.

<. 'he 1ri.a fa%ie o#servations contained in this 7rder are "ade on the #asis of the "ateria$
avai$a#$e on record i.e. infor"ation o#tained fro" the Ministry of .orporate /ffairs:
we#site i.e. )*#A 21 Porta$) a$ongwith docu"ents annexed with the Writ Petition No.
13997 of 2014 Ashru L. Das vs. UO ! Others "#a$%utta &igh #ourt'. In this context, MI!
and its a#ove"entioned +irectors "ay, within &1 days fro" the date of receipt of this
7rder, fi$e their rep$y, if any, to this 7rder and "ay a$so indicate whether they desire to
avai$ the"se$ves an opportunity of persona$ hearing on a date and ti"e to #e fixed on a
specific reFuest "ade in that regard.

@. 'his 7rder is without preudice to the right of SEBI to ta;e any other action that "ay #e
initiated against MI! and its a#ove"entioned +irectors in accordance with $aw.



<=+$": M.2:+& S. RAMAN
D+%": A.0.(% 22, 2014 WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA



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