PRESS RELEASE - SEBI
March 28, 2001
PR No. 55/2001

Investigations, Enforcement and Surveillance Department

It had come to the notice of Securities and Exchange Board of India that Toubro Infotech and Industries Ltd., a company having its registered office at Chandigarh has been raising money from the general public in the name of private placement of secured debentures all over the country and particularly in various places in West Bengal. The company has been offering interest on its debentures at a rate higher than the prevailing market in order to allure the gullible investors. 

Toubro Industries Ltd., did not follow any of the provisions of Companies Act, 1956 or the disclosure norms prescribed by Securities and Exchange Board of India for issue of debentures. The offer documents issued by the company contained several misstatements that were made with an intention to mislead the investors and to secure subscription to its debentures. 

In the above circumstances, Securities and Exchange Board of India has recently launched prosecution against the above company, its Managing Director Shri Kanwardeep Singh and other directors under Sec. 56(3), 63 and 68 of Companies Act, 1956 by filing a complaint before the Chief Metropolitan Magistrate at Kolkata.