Interim Order cum Show Cause Notice in the matter of Cell Realcon Corporation Limited

Shri S Raman, Whole Time Member, Securities and Exchange Board of India (SEBI), has prima-facie found that Cell Realcon Corporation Limited ("Company") having its registered office at Bagdona, Opposite Dee Pee Lodge, Tehsil–Ghoradungari, Betul–460443 (Madhya Pradesh) has been illegally raising money from public and accordingly passed an interim order dated June 17, 2015 against the company and its directors, Shri Kumar Kanti Bhattacharya, Shri Debi Prasad Mookherji, Shri Sourav Bardhan, Shri Sekh Rezaul Karim and its Debenture Trustee, viz. Cell Debenture Trust (represented by Shri Abdul Basad Molla). The Order, inter-alia directs as under:

• The company shall forthwith cease to mobilize any fresh funds from investors through the Offer of Non–Convertible Redeemable Debentures ("NCDs") or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly.
• The company and its directors are prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, in any manner whatsoever, either directly or indirectly.
• The company and its directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly.
• The company and its directors shall not dispose off any of the properties or alienate or encumber any of the assets owned/acquired by the company through the offer of Non-Convertible Redeemable Secured Debentures ("NCDs").
• The company and its present/past directors shall not divert any funds raised from public at large through the Offer of NCDs, which are kept in bank account(s) and/or in the custody of the company.
• The Debenture Trustee, viz. Cell Debenture Trust is prohibited from continuing with his present assignment as debenture trustee in respect of the Offer of NCDs of the company and also from taking up any new assignment or involvement in any new issue of debentures, etc. in a similar capacity.

The company was engaged in fund mobilizing activity from the public through Offer of NCDs without complying with the relevant provisions of the Companies Act, 1956 and provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

The full text of the order is available on the website: www.sebi.gov.in