sebi:WTM/GM/EFD/44/2017-18
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
NML's schemes held to be unregistered collective investment schemes; NML and its directors directed to wind up schemes and refund investors with returns within three months, restrained from collecting funds, alienating assets except for refunds, and restrained from securities market and listed-company positions.
Provisions invoked
- s. 11A
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Networth Marketing Limited (CIN: U519009MH2005PLC153914)
- Mr. Anis Mohamad Kazi
- Mr. Bhaskar Bhao Vasage
- Mr. Mahendra Mahadeo Bhuvad
- Mr. Nuruddin Shaikh
- Mr. Bhalerao Yashwant Misal
- Mr. Partha Ghosh
Holding
NML's plot-booking/rental plans are collective investment schemes operated without registration in violation of section 12(1B) read with section 11AA and regulation 3 of the CIS Regulations, and NML and its directors are jointly and severally liable to wind up the schemes and refund investors with returns within three months with market-access and directorship restraints.
Full text
Page 2 of 7 SEBI and thus contravened section 12(1B) of the Securities and Exchange Board of India Act, 1992 (“the SEBI Act”) read with section 11AA of the SEBI Act and regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (CIS Regulations). It was also observed that the fund mobilization activity of NML through its various schemes prima facie amounted to fraudulent practice under regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice Relating to Securities Market) Regulations, 2003 (PFUTP Regulations).
Page 3 of 7 They have already refunded around `21.46 crores out of the amount of `37.27 crores collected under the schemes by selling flats and buildings constructed on the plots of land. They propose to refund the money collected to the investors within two years. It was also urged that they may be permitted to sell their property in order to repay the investors and sought relaxation in the interim directions to that extent.
Page 4 of 7 subscribers under its rental plans, namely, Kohinoor, Ruby and Platinum. Under these plans, subscribers were entitled to receive an amount each month as monthly rental and an 'estimated realisable value' at the end of the term of the scheme. All these schemes offered by NML also provided complementary accidental insurance coverage. Various plans, including the ones mentioned above, have been shown in detail in the tables in paragraph 7(d) of the interim
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/GM/EFD/44/2017-18. 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.