sebi:WTM/PS/154/IMD-CIS/SRO/FEB/2016
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Facts / Headnote
Held BAFIL's plans are unregistered collective investment schemes in violation of law; confirmed interim restraints and directed cessation of CIS activity, refund to investors, asset freeze except for refunds, inventory disclosure, and regulatory referrals.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 19
- s. 12
- s. 10
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Blessing Agro Farm India Limited
- Mr. Innsaipillai Lurdpillai Joseph Jeyaraaj
- Mrs. Prakasam Sagaya Packia Santhi
- Mr. Irudayaraj Manickam Pillai Jeyabalan
- Mr. Santhanapeter
Holding
BAFIL's land/plot instalment plans satisfy all four conditions in section 11AA(2) of the SEBI Act and are therefore collective investment schemes run without registration in violation of section 12(1B) and regulation 3 of the CIS Regulations.
Full text
Page 2 of 36 regulation 4(2)(t) of the SEBI (Prohibition of Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“the PFUTP Regulations”).
Page 3 of 36 (c) It would furnish a full inventory of assets owned by it. (d) It would not dispose of or alienate assets of existing scheme and would not divert funds received under the schemes. (e) It is in the process of obtaining a certificate from auditor on the amounts mobilized and refunded till date. (f) It is preparing scheme-wise list of investors, their addresses and amounts received from them.
Page 4 of 36 (b) To carry on the business of farming, agricultural and related activities (c) To carry on the business of real estate (d) To carry on the business of manufacturing and/or trading in drinking water, cleaning material etc (e) To carry on the business as insurance agents.
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Source: SecMarx — sebi:WTM/PS/154/IMD-CIS/SRO/FEB/2016. 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.