sebi:CO/440/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 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.

Provisions invoked

• s. 11B
• s. 11
• s. 12

Regulations

• Reg. 68
• Reg. 74
• Reg. 73
• Reg. 65
• Reg. 5
• Reg. 68(1)
• Reg. 30A

Parties

• M/s. Touchwood Agrotech (P) Ltd., Chennai

Holding

The Chairman of SEBI debarred Touchwood Agrotech (P) Ltd., its promoters, directors, managers, and persons in charge of the business of its schemes from operating in and accessing the capital market for a period of 5 years for violating the SEBI (Collective Investment Schemes) Regulations, 1999 and failing to comply with earlier 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. TOUCHWOOD AGROTECH (P) LTD., CHENNAI. M/s. Touchwood Agrotech (P) Ltd., Chennai (hereinafter referred to as "Company") having its office at # 63, 3 Street, W- Block, Anna nagar, Chennai 600 040 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. The company filed information only on April 29, 1998 , that too in response to our letter dated April 22, 1998 . Consequent to the notification of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter 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, is required to wind up the existing scheme(s) and repay the investors. Further as per Regulation 74

The company filed information only on April 29, 1998 , that too in response to our letter dated April 22, 1998 . Consequent to the notification of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter 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, is required to wind up the existing scheme(s) and repay the investors. Further as per Regulation 74, an existing Collective Investment Scheme which is not desirous of obtaining provisional registration from SEBI is required to formulate a scheme of repayment and make repayment to the existing investors in the manner specified in Regulation 73. SEBI vide a letter dated December 13, 1999 had given intimation to the Company that in case it is not desirous of obtaining registration from the SEBI, it was obliged to send Information Memorandum (IM) to all the investors detailing the state of affairs of the scheme(s), the amount repayable to each investor and the manner in which such amount is determined In reply, the company vide letter dated 28.12.99

amount is determined. Accordingly, the Company was required to send the Information Memorandum to the investors latest by February 28, 2000. In the meanwhile, SEBI having regard to the interest of the investors and requests received from various entities, extended the last date for submitting application for grant of registration by existing entities upto March 31, 2000. The same was intimated by SEBI vide a press release and a public notice. However, the Company still did not apply for grant of registration with SEBI in terms of the said Regulations. As a matter of fact, the Company, neither applied for registration under the said Regulations nor has taken any steps for winding up of the scheme(s) and making payment to the investors in the manner provided under the said Regulations. Thus, the company has 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. The Company vide its rep

Source: SecMarx — sebi:CO/440/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.