sebi:CO/242/CIS/10/2002
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Facts / Headnote
Company directed to refund money collected under its schemes with returns to investors who have not given positive consent, within one month, and to submit the Winding Up and Repayment Report in SEBI's specified format within 15 days thereafter; unrepayable amounts to be placed in 60-month fixed deposits with a scheduled bank.
Provisions invoked
- s. 11B
- s. 24
- s. 12
Regulations
- Reg. 65
- Reg. 68(1)
- Reg. 73(6)
Holding
The company violated Section 12(1B) of the SEBI Act, 1992 and Regulations 68(1) and 73 of the Regulations by failing to furnish the Winding Up and Repayment Report in the format specified by SEBI. The company was directed to refund money collected under its schemes with returns to investors who had not given positive consent, within one month, and to submit the report within 15 days thereafter.
Full text
mobilized" that the company has indicated details regarding those investors who have not given their positive consent in terms of Regulation 73(6) and 73(7) of the Regulations. Whereas as per the format specified by SEBI, the company was required to include details regarding the total number of investors and the amount mobilised from them under each of its schemes in the aforesaid column. Therefore, the company has not furnished the "Winding Up and Repayment Report" as per the format specified by SEBI. In light of the aforesaid, I am of the view that the company has violated the provisions of Section 12(1B) of SEBI Act, 1992 and the provisions of Regulation 68(1) and 73 of the Regulations. Therefore, in exercise of the power conferred upon me under section 11B of the SEBI Act, 1992 read with Regulation 65 and 73 of the Regulations, I hereby direct the company to refund the money collected under its schemes with returns which is due to the investors as per the terms of the offer, to all the investors who have not given the positive consent to continue with the schemes ,within a period of one month from the date of this Order and submit the "Winding Up and Repayment Report",strictly in the format specified by SEBI, within 15 days thereafter. In case the company is unable to repay to any of the investors for reasons such as non availability of the current address of those investors or for any other reason whatsoever, the company shall place the amounts payable to each of such in
1. Initiation of prosecution under section 24 of SEBI Act, 1992 which prescribes imprisonment for a term which may extend to one year, or with fine, or with both against the company /its promoters /its directors /its managers/ persons in charge of the business of its schemes.
2. The company /its promoters/its directors/its managers/persons in charge of the business of its schemes would be debarred 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/242/CIS/10/2002. 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.