May 20, 2016
PR No. 100/2016

Order in the matter of M/s Cell Industries Limited

Shri Prashant Saran, Whole Time Member, SEBI has passed an order on May 12, 2016, wherein M/s. Cell Industries Limited, its promoters/ directors, inter-alia have been directed to refund the money collected by the company through issuance of Redeemable Preference Shares and Non – Convertible Debentures including the money collected from investors, till date, pending allotment of RPS and NCDs, if any, with interest at the rate of 15% per annum compounded at half yearly intervals.
 
The company and its promoters/ directors are also restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner, with immediate effect. They are also restrained from issuing prospectus, offer document or advertisement soliciting money from the public and associating themselves with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI. The above directions shall come into force with immediate effect and shall continue to be in force from the date of this Order till the expiry of 4 years from the date of completion of refunds to investors.
 
The Debenture Trustee viz. Debenture Trustees, viz. Mr. Ashish Kumar De Sarkar, Mr. Samrat Sinha and Mr. Abdul Basad Molla are prohibited from acting as an intermediary, accessing the securities market and further restrained from buying, selling or dealing in securities, in any manner whatsoever, for a period of 4 years. The company was engaged in fund mobilizing activity through issuance of Redeemable Preference Shares and Non – Convertible Debentures, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956 and the relevant provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
 
The company and its directors shall issue public notice, in all editions of two National Dailies (one English and one Hindi) and in one local daily (in Bengali) with wide circulation, detailing the modalities for refund, including details of contact persons including names, addresses and contact details, within fifteen days of this Order coming into effect. SEBI had passed an interim order on March 17, 2015 in the matter, whereby inter-alia, it directed the company and its promoters/ directors not to collect any more money from investors through issuance of securities in any manner whatsoever.
 
The present order dated May 12, 2016 brings to conclusion the above said proceedings with the aforesaid directions.

Mumbai
May 20, 2016

For full copy of order against CELL INDUSTRIES LTD., MR.KUMAR KANTI BHATTACHARYA, MR.DEBI PRASAD MOOKHERJI, MR.SOURAV BARDHAN, MR.ASHIM GUPTA, MR.ASRAF ALI SHAIKH, MR.SHAIKH AJGAR ALI, MR.SAIK MAJAFFAR, MR.RAJESH JAISWAL, MR.SEKH REZAUL KARIM, MR.KOUSHIK MUKHERJEE AND DEBENTURE TRUSTEES, VIZ. MR.ASHISH KUMAR DE SARKAR, MR.SAMRAT SINHA and MR.ABDUL BASAD MOLLA click here.