sebi:WTM/PS/170/EFD/FEB/2016
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Facts / Headnote
Order finding Pancard Clubs Limited operated unregistered Collective Investment Schemes; directions issued including attachment and recovery proceedings in case of failure; matter without prejudice to adjudication and prosecution proceedings.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 19
- s. 11(1)
- s. 12
- s. 11(2)
- s. 45
- s. 58A
- s. 620A
- s. 65
- s. 2(1)
- s. 291
- s. 130
- s. 2(9)
Regulations
- Reg. 68
- Reg. 73(1)
- Reg. 71
- Reg. 73
- Reg. 65
- Reg. 3
- Reg. 70
Parties
- Pancard Clubs Limited
- Sudhir Shankar Morvekar
- Shoba Ratnakar Barde
- Usha Arun Tari
- Manish Kalidas Gandhi
- Chandrasen Ganpatrao
Holding
Pancard Clubs Limited's holiday/timeshare schemes were held to be Collective Investment Schemes under Section 11AA of the SEBI Act, operated without registration as required under Section 12(1B) and Regulation 3 of the CIS Regulations. Directions were issued against the Company and its directors, with attachment and recovery proceedings to be initiated in case of failure.
Full text
Page 2 of 84 1. Securities and Exchange Board of India (“SEBI”) vide an ex-parte interim order dated July 31, 2014, prima facie observed that the schemes launched and carried on by Pancard Clubs Limited (“the Company” or “PCL”) were Collective Investment Scheme (“CIS”) in terms of section 11AA of the Securities and Exchange Board of India Act, 1992 (“the SEBI Act”) and alleged that the Company had operated such CIS without registration from SEBI as mandated under section 12(1B) of the SEBI Act and regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (“CIS Regulations”). In
Page 3 of 84 inception till date. In case the investors/applicants opted for surrender value instead of timeshare, the details of surrender value redeemed, since incorporation of PCL till date. c. List of all investors along with their address and contact numbers and their investments, since incorporation of PCL till date. d. On noticing from the letter dated April 04, 2014 that there are other schemes (in addition to those mentioned in the interim order), SEBI sought details regarding all the plans such as brochures, application forms etc. pertaining to other schemes run by you since incorporation of PCL till date. e. All the financial statement of PCL since incorporation of PCL till date. f. Details of all the bank accounts of PCL including the closed ones since incorporation of PCL till date g. Details of full inventory of the assets obtained from the money raised by PCL from public. h. Details of assets of PCL along with date (year) of its operation. Information on the source of funds for acquiring/construction of the asset. i. Details of Assets of group entities/subsidiaries of PCL. j. Year wise details of the commission paid to agents in the following format since incorporation of PCL till date.
Page 4 of 84 six months from December 19, 2014. SEBI was directed to pass orders within 3 months on receipt of information.
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Source: SecMarx — sebi:WTM/PS/170/EFD/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.