Description
SEBI enforcement order against Sarvoday Agro Power Limited for illegal public issue of debentures without compliance with securities regulations.
Summary
SEBI has issued an enforcement order against Sarvoday Agro Power Limited (SAPL) and its directors for illegally raising ₹4.67 crores from 3,622 public investors through secured non-convertible redeemable debentures during 2010-2012 without complying with securities regulations.
Key Points
- SAPL raised ₹4,67,57,500 through 4,67,575 NCDs from June 2010 to October 2012
- Company violated Companies Act 1956, SEBI Act 1992, and SEBI (Issue and Listing of Debt Securities) Regulations 2008
- 20 noticees including company, directors, and debenture trustees involved
- MCA inspection report triggered SEBI examination in 2022
- Show Cause Notice issued on June 24, 2024
Regulatory Changes
No new regulatory changes introduced - enforcement of existing securities law provisions.
Compliance Requirements
- Public companies must comply with SEBI regulations before issuing securities to public
- Debenture trustees must follow SEBI (Debenture Trustees) Regulations 1993
- Proper disclosure and regulatory approvals required for public issues
Important Dates
- Issue period: June 25, 2010 to March 31, 2012 and May 15, 2012 to October 31, 2012
- MCA reference: June 24, 2022
- Show Cause Notice: June 24, 2024
- Order date: July 31, 2025
Impact Assessment
- Affects 3,622 public investors who subscribed to illegal debenture issue
- Demonstrates SEBI’s continued enforcement against unauthorized fund mobilization
- Warning to unlisted companies attempting to raise public funds without compliance
- Medium impact as involves unlisted company but significant public investor base
Impact Justification
Enforcement action against unlisted company for regulatory violations affecting public investors