sebi:CO/197/IMD/01/2004

SEBI · SEBI · 2003-04-25 · G.N Bajpai, Chairman

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

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 five years

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. 71(2)

Parties

• M/s Avani Plantations Ltd
• Mr. Vasant Jagjivandas Kotak
• Mr. Deepak Dhirajlal Dalal
• Mr. Lalit Shankar Mahadik
• Mr. Arvind Kotak
• Mr. Jagjivandas Kotak
• Ms. Hiraben Kotak
• Ms. Kashmira Kotak
• Ms. Varsha Kotak
• Mr. Dhanji Kotak
• Ms. Deepali Upasni
• Mr. Ajit Panday

Holding

SEBI prohibited M/s Avani Plantations Ltd, its promoters, directors, managers and persons in charge of the business of its schemes from dealing in and accessing the securities market for a period of five years for non-compliance with conditions of provisional registration and for failure to comply with SEBI's order dated 27.11.03 directing refund of money to investors.

Full text

SCHEMES) REGULATIONS, 1999 IN THE MATTER OF M/S AVANI PLANTATIONS LTD M/s Avani Plantations Ltd (hereinafter referred to as the company) applied to the Securities and Exchange Board of India (hereinafter referred to as SEBI) for the grant of registration under SEBI (Collective Investment Scheme) Regulations, 1999 (hereinafter referred to as the said regulations). After considering the application filed by the company, SEBI granted provisional registration to the company on April 1, 2001 subject to the fulfillment of the conditions specified in regulation 71 of the said Regulations. Thereafter, SEBI vide its letters dated July 23, 2001, August 14, 2001 and September 21, 2001 advised the company to submit an interim report on the status of compliance of the conditions specified in regulation 71 of the said Regulations. The company was also informed about the pending investor complaints and was also advised to redress the same. The company vide its letter dated August 14, 2001, inter alia, informed SEBI that they were negotiating with financially strong corporate companies to increase their existing project net worth to Rs. 5 crores. As the company failed to comply with the conditions specified in regulation 71 of the said Regulations, and also failed to submit the interim report on the current status of compliance with the provisions of the said Regulations, SEBI vide its letter dated January 7, 2003 called upon the company to show cause as to why the provisional registration g

credit rating, appraisal of the schemes, creation of trust etc., and hence requested for additional time for complying with the conditions stipulated in regulation 71 of the said Regulations. It was further submitted that if the company was granted final registration by SEBI, they would comply with the required conditions as laid down in the said Regulations. The provisional registration is granted to an entity subject to the said entity complying with the various conditions stipulated in regulation 71 (1) of the said Regulations. As per regulation 71(2), the entity is required to submit a written undertaking to SEBI to comply with the conditions specified in regulation 71(1) of the said Regulations. Under 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. The provisional registration was granted to the company on April 1, 2001 and the same expired on March 31, 2003. The company failed to submit any compliance report regarding the fulfillment of the conditions laid down under regulation 71 of the said Regulations. Further, SEBI vide its letter dated 25.4.03 advised the company, inter alia, to comply with the conditions specified in regulation 71 of the said Regulations such as getting th

an order directing M/s Avani Plantations 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

Source: SecMarx — sebi:CO/197/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.