sebi:WTM/AB/EFD1/EFD1-DRA3/7492/2020-21
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Facts / Headnote
Directions issued: refund of balance monies with interest, market restraint, winding up and repayment report, asset inventory, and recovery provisions on failure
Provisions invoked
- s. 11A
- s. 11
- s. 19
- s. 11(1)
- s. 12
- s. 28A
- s. 24
- s. 45
- s. 58A
- s. 620A
- s. 67(3)
- s. 67
- s. 32
Regulations
- Reg. 65
- Reg. 3
- Reg. 9
- Reg. 2
- Reg. 2(h)
- Reg. 2(1)(h)
- Reg. 32
Parties
- Arohan Trustee Company Private Limited
Holding
The scheme operated by Arohan Trustee Company Private Limited (India Art Fund) was a Collective Investment Scheme under Section 11AA of the SEBI Act, and Arohan carried it on without registration in contravention of Section 12(1B) read with Regulation 3 of the CIS Regulations. Directions were issued requiring refund of the balance of Rs. 24.50 crore collected (only Rs. 8.43 crore refunded) with interest, market restraint, and ancillary compliance obligations.
Full text
Final Order in the matter of Arohan Trustee Company Private Limited Page 2 of 29 Court of India impugning the order dated October 13, 2015 passed by Hon’ble SAT in
Final Order in the matter of Arohan Trustee Company Private Limited Page 3 of 29 Company Private Limited Vs. SEBI wherein order dated March 22, 2016 was passed by the Hon’ble SAT, was filed, which is narrated in brief hereunder:
Final Order in the matter of Arohan Trustee Company Private Limited Page 4 of 29 b. Arohan Trustee Company Private Limited is restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of four (4) years. c. Arohan Trustee Company Private Limited is directed to refund the entire monies collected by it under its scheme to all the investors along with an interest at the rate of 10% per annum (from the date of investment till the date of part refunds) within a period of three months from the date of this Order and thereafter, within a period of fifteen days, submit a winding up and repayment report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds. d. Arohan Trustee Company Private Limited is also directed to immediately submit the complete and detailed inventory of the assets owned by Arohan Trustee Company Private Limited. e. In the event of failure by Arohan Trustee Company Private Limited to comply with the above directions, the following actions shall follow: i. Arohan Trustee Company Private Limited shall remain restrained from accessing the securities market and would further be prohibited from buying, selling or otherwise dealing in securities, even after the period of four (4) years of
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Source: SecMarx — sebi:WTM/AB/EFD1/EFD1-DRA3/7492/2020-21. 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.