sebi:CO/438/CIS/01/2003

SEBI · SEBI · 1997-12-18 · G. N. Bajpai, Chairman, Securities and Exchange Board of India

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Facts / Headnote

Debarment of the company, its promoters, directors, managers and 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. Green Earth Farms and Estate Private Limited

Holding

The Chairman debarred Green Earth Farms and Estate Private Limited, its promoters, directors, managers and persons in charge of its schemes from operating in and accessing the capital market for a period of 5 years from the date of the order for violating the SEBI (Collective Investment Schemes) Regulations, 1999 and failing to comply with SEBI's directions.

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, ISSUED TO M/S. GREEN EARTH FARMS AND ESTATE PRIVATE LIMITED, CHENNAI. M/s. Green Earth Farms and Estate Private Limited (hereinafter referred to as "Company") having its office at Flat No.4, 1 Floor, Swati Complex, 10, Bazullah Road, T. Nagar, Chennai, did not file information with SEBI pursuant to public notice dated 18.12.1997 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 SEBI’s letter dated 21.04.1998 asking the company to show cause as to why appropriate action should not be initiated against it for non furnishing of 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 was 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 t

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. Thus, the company had prima-facie violated the provisions of Section 12(1B) of SEBI Act, 1992, and Regulations 5(1) read with Regulations 68 (1), 68(2), 73 & 74 of the SEBI (Collective Investment Schemes) Regulations, 1999. SEBI had also issued a public notice in various newspapers in this regard inviting attention of the concerned entities including the Company herein about the statutory requirements under the provisions of SEBI Act, 1992, and the said Regulations. Further, by way of a Show Cause Notice dated May 12, 2000, the Company was asked to show cause as to why the action mentioned therein be not initiated against it for the aforesaid violations/ non-compliance. As the company did not reply to the show cause notice,

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Source: SecMarx — sebi:CO/438/CIS/01/2003. 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.