sebi:1300270329131
Facts / Headnote
Directed to refund money collected with returns within one month, failing which prosecution, debarment and referrals to follow
Provisions invoked
- s. 11B
- s. 4(3)
- s. 11
- s. 24
Regulations relied on
- SEBI (CIS) Regulations, 1999 — 65
- SEBI (CIS) Regulations, 1999 — 71
- SEBI (CIS) Regulations, 1999 — 73
Parties
- M/s Ion Exchange Enviro Farms Ltd
Holding
M/s Ion Exchange Enviro Farms Ltd was directed to refund the money collected under its schemes with returns to investors within one month from the date of the order, failing which prosecution under Section 24, 5-year debarment, police/State Government referral and winding-up referral would follow.
Full text
Although the company has, time and again, been informed that in case it failed to comply with several conditions of Regulation 71 of the said Regulations, within the stipulated period the company would be required to wind up its schemes in terms of Regulation 73 of the said Regulations. It is further noted from the material available on record and the admission made by the representatives of the company that, till date, the company has not complied with the conditions laid down under Regulation 71 of the said Regulations.
8. As per the provisions of Regulation 73 (1)( c) of the said Regulations, if an existing Collective Investment Scheme, after obtaining provisional registration, fails to comply with the provisions of Regulation 71 of the said Regulations, has to wind up the existing scheme(s) in accordance with the procedure stipulated in Regulation 73(2) to (9) of the said Regulations.
9. Since the company has failed to comply with several conditions specified in Regulation 71 of the said Regulations such as getting the existing schemes rated, appraised and creating a trust, etc., within the stipulated period of two years from the date of grant of the provisional registration, the company is required to wind up the existing schemes and make repayments to the investors. Further, the company is required to send an Information Memorandum to the investors, who have subscribed to the schemes, within 2 months from the date of receipt of the intimation from SEBI in terms of Regulation 73(2) of the said Regulations. SEBI vide its letter dated 25.4.03 advised the company, on completion of the winding up and repayment to the investors in terms of Regulation 73 of the said Regulations, to file a detailed report in the prescribed format so as to reach SEBI within 3½ months of the date of the Information Memorandum. Thereafter, a press release dated 2.5.03 was issued by SEBI to that effect.
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Source: SecMarx — sebi:1300270329131. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.