sebi:CO/383/CIS/11/2002
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Facts / Headnote
Debarment of the company and its promoters/directors/managers/persons in charge from operating in and accessing the capital market for 5 years
Provisions invoked
- s. 11B
- s. 11A
- s. 12
Regulations
- Reg. 68
- Reg. 74
- Reg. 73
- Reg. 65
- Reg. 5
- Reg. 5(1)
- Reg. 68(1)
- Reg. 30A
Parties
- M/s. Beauty Paradise Resorts Pvt. Ltd.
- Shri B L Narasa Reddy
- Shri K Sreedhar Reddy
- Shri K Sassidhar Reddy
- Shri C Sreenivasulu Reddy
Holding
The Chairman debarred M/s. Beauty Paradise Resorts Pvt. Ltd. and its promoters, directors, managers and persons in charge of the business of its schemes from operating in the capital market and from accessing the capital market for a period of 5 years from the date of the order.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT 1992 READ WITH REGULATIONS 65 AND 73 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999. M/s. Beauty Paradise Resorts Pvt. Ltd. (herein after referred to as "Company") did not file information with SEBI pursuant to the Public Notice dt. 18.12.97 whereby SEBI had directed all the existing Collective Investment Schemes to file certain information about their schemes with it by 15.01.1998. Pursuant to the letter dt. 18.05.1998 from SEBI asking the company to show cause as to why appropriate action should not be initiated against it for such non-furnishing of the information the company while furnishing certain information contended that it is not operating Collective Investment Schemes. Consequent to the notification of SEBI (Collective Investment Schemes) Regulations, 1999 (herein after referred to as the "said Regulations") dated October 15, 1999, every person who, immediately prior to the commencement of the said Regulations, operating a Collective Investment Scheme(s), was required to make an application to SEBI for the grant of registration within a period of two months from the date of notification, under the provisions of the said Regulations. In terms of Regulation 73 of the said Regulations, an existing Collective Investment Scheme which has failed to make an application for registration with SEBI was required to wind up its schemes and r
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non-compliance. The Company vide its reply dated May 27, 2000 reiterated that it did not fall under the definition of collective investment schemes. However from the perusal of document filed by the company with SEBI it was observed that the schemes of the company were squarely falling within the definition of Collective Investment Scheme as defined under Section 11AA of the SEBI Act, 1992 as the contributions made by the investors were pooled together and then utilised for the purposes of the schemes, the contributions or payments to such scheme were made by the investors with a view to receive profits, income or produce, the scheme property was managed by the company and the investors therein did not have day to day control over the management and operation of the scheme. However before proceeding further in terms of the said Show Cause Notice dt. 12.05.2000, the company was granted personal hearings. First of such personal hearings took place on September 6, 2000 before the then Chairman, SEBI to explain the reason of such non compliance of the said Regulations. Shri Muralidhar Reddy, Advocate, authorised representative for the Company, appeared for the personal hearing and reiterated that the schemes of the company are not collective investment schemes. However, without pressing the said argument further, he submitted that the company is ready to discharge all of its contractual obligations in terms of the agreement with the investors in the said scheme. In view of the ab
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Source: SecMarx — sebi:CO/383/CIS/11/2002. 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.