sebi:CO/196/IMD/01/2004
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Facts / Headnote
Company, its promoters, directors, managers and persons in charge of business of its schemes prohibited from dealing in and accessing the securities market for a period of five years from the date of the order.
Provisions invoked
- s. 11B
- s. 4(3)
- s. 11
Regulations
- Reg. 73(1)
- Reg. 71
- Reg. 73
- Reg. 73(2)
- Reg. 65
- Reg. 71(1)
- Reg. 11(b)
- Reg. 71(1)(h)
Holding
SEBI prohibited M/s La Mark Farms Limited and its promoters, directors, managers and persons in charge of the business of its schemes from dealing in and accessing the securities market for five years for non-compliance with SEBI's orders and directions, including the order dated 18.11.03 requiring refund of money collected under its collective investment schemes.
Full text
1. M/s La Mark Farms Limited, (hereinafter referred to as the company) mobilised around Rs 1.75 crores from the investors/ public under the collective investment schemes being operated by it. Pursuant to the press release and the public notice issued by Securities and Exchange Board of India (hereinafter referred to as SEBI) on November 26, 1997 and December 18, 1997 respectively, the company filed certain information/details in respect of its schemes with SEBI regarding its collective investment schemes.
as the state of redressal of the pending investor grievances. Further, copies of the pending investor grievances were handed over to the Directors present during the hearing who were further informed that in case the company failed to comply with the requirements of Regulation 71 by February 28, 2003 (i.e. the last date of the validity of the provisional registration) the company would be required to wind up its schemes in terms of Regulation 73 of the said Regulations. Despite the same, the company failed to fulfill the requirements of Regulation 71(1) of the said Regulations within the stipulated period of two years from the date of grant of the provisional registration. In fact as on September 30, 2003, 43 investor complaints were awaiting redressal by the company. Further, the company also failed to intimate SEBI about the change of address of the company, which amounts to violation of Regulation 11(b) read with Regulation 71(1)(h) of the said Regulations.
7. The company has failed to comply with the directions conveyed by SEBI vide its letter dated April 4, 2003 i.e. to wind up its existing schemes and make repayment to the investors in the manner specified in Regulation 73 of the said Regulations. It has also failed to submit the required report to SEBI in terms of the provisions of Regulation 73 of the said Regulations and therefore violated the provisions of Regulation 73 of the said Regulations. Thereafter, SEBI vide its order dated18.11.03 directed M/s La Mark Farms Ltd to refund the money collected under the schemes with returns to the investors within a period of one month from the date of the order.
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Source: SecMarx — sebi:CO/196/IMD/01/2004. 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.