sebi:CO/21/CIS/04/2003

SEBI · SEBI · 2002-02-04 · G N Bajpai, Chairman, SEBI

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Facts / Headnote

Company directed to wind up its existing collective investment scheme(s) and refund money collected with returns due to investors within one month; failing which prosecution under Section 24, debarring from capital market for 5 years, and referral to Department of Company Affairs for winding up.

Provisions invoked

Regulations

Parties

Holding

The company was held to have violated Section 12(1B) of the SEBI Act and Regulations 5(1), 68(1), 68(2), 73 and 74 of the CIS Regulations by operating collective investment schemes without registration, and was directed to wind up its schemes and refund investors within one month.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Highway Users Centers (I) Ltd Apr 24, 2003 | Orders : Orders of Chairman/Members 16671 24 9 1. 2. 3. 4. 5. 6. 7. 1

8. In the case of S.D. Bhattacharya and others vs. The Union of India and others, the Delhi High Court issued various directions from time to time which are applicable to all the plantation/agro based companies/entities situated all over India. Vide its order dated October 7, 1998, the court, inter-alia passed the following directions:-   i. Plantation companies, agro companies and companies running Collective Investment Schemes shall get themselves credit rated from credit rating companies approved by SEBI. ii. The companies shall furnish a list of their assets and liabilities. iii. The companies shall furnish the list of their present Directors alongwith details of their assets including date, cost and present value of acquisitions. iv. The companies are restrained from selling, disposing of and/or alienating their immovable properties or parting with the possession of the same. The Directors of these companies would also be interdicted from transferring their immovable properties in any manner whatsoever. They should also not part with the possession thereof. v. The companies shall not float new schemes to raise further funds without the permission of the court. vi. In so far as the existing schemes are concerned, the companies should strictly comply with the Circular of SEBI dated February 24, 1998.

contradictory statements; it has also made misleading statements to SEBI regarding its schemes. Moreover, it has neither applied for registration under the Regulations nor has it taken any steps for winding up of the scheme(s) and make repayment to the investors in the manner provided under the Regulations,

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Source: SecMarx — sebi:CO/21/CIS/04/2003. 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.