sebi:WTM/MPB/EFD1-DRA3/64/2018
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Facts / Headnote
Directions issued: PAPL directed to wind up the existing CIS and refund money collected with returns due to investors within three months; present Directors directed to ensure compliance; order served on Noticees, Stock Exchanges, RTAs, Depositories, MCA, and Local Police/State Government.
Provisions invoked
- s. 11B
- s. 11A
- s. 15A
- s. 19
- s. 12
- s. 58A
- s. 128
- s. 209
Regulations
- Reg. 68
- Reg. 69
- Reg. 71
- Reg. 74
- Reg. 73
- Reg. 65
- Reg. 3
- Reg. 25
- Reg. 5
- Reg. 65(c)
- Reg. 65(d)
Parties
- Paradigm Agro Products Limited (PAPL)
- Mr. Sushil Gopaldas Mantri
- Mr. Manish Rajendra Banthia
- Mr. Rajendrakumar Dhanraj Banthia
- Mr. Shrikant Gopaldas Mantri
- Mr. Pravin Patkar
Holding
The teakwood plantation scheme floated by PAPL in 1994 qualifies as a collective investment scheme (CIS) under Section 11AA of the SEBI Act and as an 'existing CIS' under Section 12(1B), and PAPL violated Section 12(1B) read with Regulations 3, 5, 68 and 69 of the CIS Regulations by not applying for registration or winding up the scheme under Regulation 73. Noticees No. 2 to 6 (the Directors) are responsible for the violations during their directorship.
Full text
Order in the matter of Paradigm Agro Products Limited Page 2 of 37 the amount on maturity invested in the scheme floated by Paradigm Agro Products Limited (hereinafter referred to as “PAPL / Company”). The compalinant had also submitted the scheme document.
Order in the matter of Paradigm Agro Products Limited Page 3 of 37 SHOW CAUSE NOTICE 4. Consequent to the completion of examination a common Show Cause Notice dated January 21, 2016 (hereinafter referred to as “SCN”) was served / sent to PAPL, Mr. Sushil Gopaldas Mantri, Mr. Manish Rajendra Banthia, Mr. Rajendrakumar Dhanraj Banthia, Mr. Shrikant Gopaldas Mantri and Mr. Pravin Patkar (hereinafter referred to as “Noticees No. 1 to 6” respectively) in the matter of Paradigm Agro Products Limited to show cause as to why suitable actions/directions in terms of Sections 11, 11(4) and 11B of the SEBI Act should not be initiated against them for the alleged violation of the provisions of Section 12(1B) of SEBI Act read with Regulations 3, 5, 68 and Regulation 69 of the CIS Regulations.
Order in the matter of Paradigm Agro Products Limited Page 4 of 37 Registration of the scheme was not warranted as the said scheme was wound up and the company was not carrying the said scheme as on the date of commnencement of CIS Regulations. Mr. Sushil Gopaldas Mantri, Mr. Manish Rajendra Banthia, Mr. Rajendrakumar Dhanraj Banthia and Mr. Shrikant Gopaldas Mantri had resigned from the company w.e.f. March 01, 2001. Noticees requested for inspection in the matter.
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Source: SecMarx — sebi:WTM/MPB/EFD1-DRA3/64/2018. 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.