sebi:CO/158/IMD/10/2003
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Facts / Headnote
Direction to refund money collected under Collective Investment Schemes with returns within one month, failing which prosecution, debarring, criminal referral, and winding-up actions to follow
Provisions invoked
- s. 11B
- s. 4(3)
- s. 24
Regulations
- Reg. 71
- Reg. 73
- Reg. 73(2)
- Reg. 65
Parties
- M/s. Parasrampuria Plantations Ltd
Holding
SEBI directed Parasrampuria Plantations Ltd to refund the money collected under its Collective Investment Schemes with returns due to investors within one month, failing which prosecution, debarring, criminal referral, and winding-up proceedings would be initiated.
Full text
had requested SEBI to grant some more time to submit a report through its Chartered Accountants regarding compliance of the conditions of the said Regulations and redressal of investor grievances. It is also noted during the hearing that PPL had not complied with certain requirements of Regulation 71 of the said Regulations such as appraisal and the credit rating of its existing schemes and formation of a trust. Further, PPL was directed to submit a compliance report by January 23, 2003. Subsequent to the hearing, however, PPL vide letter dated January 22, 2003, requested SEBI to extend the provisional registration granted to it by one more year so as to repay the remaining investors. Since the provisional registration was valid for two years and as there is no provision in the said Regulations to grant extension of its provisional registration, and as the company had failed to comply with the requirements of Regulation 71 of the said Regulations, in terms of Regulation 73(2), SEBI issued an intimation dated February 19, 2003 to PPL advising it to wind up its existing schemes in accordance with the aforesaid Regulations and to make repayment to its investors. PPL was also directed to send the Information Memorandum (IM) to the investors, who had subscribed to the scheme(s) within two months from the date of receipt of the aforesaid intimation from SEBI in terms of Regulation 73(2). Further, in terms of Regulation 73, PPL was advised to submit "winding up and repayment re
3. Writing to the state government/ local police to register civil / criminal cases against the company and its promoters /directors for apparent offences of fraud , cheating, criminal breach of trust and misappropriation of public funds
2. Debarring the company/ its promoters/ directors/ managers/ persons in charge of the business of its scheme(s) from operating in the capital market and from accessing the capital market for a period of 5 years.
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Source: SecMarx — sebi:CO/158/IMD/10/2003. 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.