sebi:CO/72/CIS/07/2003
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Facts / Headnote
Company directed to refund money collected under scheme(s) with returns due to investors within one month, failing which four specified enforcement actions would follow
Provisions invoked
- s. 11B
- s. 24
Regulations
- Reg. 73
- Reg. 65
- Reg. 73(8)
Holding
The company was directed to refund the money collected under its scheme(s) with returns due to investors within one month, failing which prosecution, debarring, referral to police, and referral to the Department of Company Affairs for winding up would follow.
Full text
While intimating the grounds of rejection of the application of the company, SEBI vide its letter dated November 28, 2001, advised the company that pursuant to the rejection of its application, the company, should wind up its existing Collective Investment Scheme(s) and make repayment to the investors in the manner specified in Regulation 73 of the said Regulations.
1. Initiation of prosecution proceedings, under Section 24 of the SEBI Act, 1992, against the company / its promoters / directors / managers / persons in charge of the business of its scheme(s),
Accordingly, the company was required to send an information memorandum to the investors, who had subscribed to its scheme(s), within 2 months from the date of receipt of the intimation from SEBI. Furthermore, on completion of the winding up and repayment to the investors in terms of Regulations 73(8) & 73(9) of the Regulations, and as per the intimation given vide public notice no davp 99/716, the company was required to file the winding up and repayment report in the format prescribed by SEBI so as to reach SEBI within 3½ months of the date of the information memorandum.
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Source: SecMarx — sebi:CO/72/CIS/07/2003. 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.