sebi:CO/431/CIS/12/2002
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Facts / Headnote
Direction to refund money collected under scheme(s) with returns to investors within one month, failing which enforcement actions (prosecution, market debarment, referral to police, referral for winding up) to follow
Provisions invoked
- s. 11B
- s. 24
- s. 12
Regulations
- Reg. 73
- Reg. 65
- Reg. 30A
Parties
- Janaraksha Green Forests Limited
Holding
SEBI directed Janaraksha Green Forests Limited to refund the money collected under its scheme(s) with returns due to investors within one month, on the ground that the company failed to comply with the winding-up and repayment requirements under Regulation 73 after its registration application was rejected.
Full text
received at SEBI’s office on 1.5.98 again stating that it is not covered under section 12(1B) of the SEBI Act, 1992. Vide its letter dated 16.6.98, SEBI replied to the company stating that scrutiny of its documents clearly brings out that the Company is operating Collective Investment Schemes well within the jurisdiction of SEBI in terms of SEBI’s Press Release/Public Notice dated 26.11.97/18.12.97 respectively. Subsequent to the notification of SEBI (Collective Investment Schemes) - Regulations, 1999 (hereinafter referred to as the Regulations) dated October 15, 1999, the company had applied for registration under the provisions of the Regulations. The application and other details available on record were examined. As it was found that the company did not fulfil certain requirements of the Regulations for grant of registration, your application was rejected by SEBI. While intimating the grounds of rejection of its application vide SEBI’s letter dated 15.2.2002, the company was also advised that pursuant to the rejection of its application, the company, as an existing Collective Investment Scheme, was required to wind up its existing scheme(s) and make repayments to the investors in terms of Regulation 73 of the Regulations. Accordingly, the company was required to send an information memorandum to the investors, who had subscribed to its scheme(s), within two months from the date of receipt of the intimation from SEBI. Further, on completion of the winding up and repayment
from operating in the capital market and from accessing the capital market for a period of 5 years. Writing to the state governments/local police to register civil/criminal cases against the company for apparent offences of fraud, cheating, criminal breach of trust and misappropriation of public funds. Writing to the Department of Company Affairs to initiate the process of winding up of the company. Place: Mumbai Date: December 27, 2002 G.N. BAJPAI CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA 3. 4.
3. Writing to the state governments/local police to register civil/criminal cases against the company for apparent offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.
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Source: SecMarx — sebi:CO/431/CIS/12/2002. 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.