sebi:WTM/PS/197/IMD-CIS/SRO/MAR/2016
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Facts / Headnote
Held schemes are unregistered Collective Investment Schemes; directed company and present and former directors to wind up schemes, refund mobilized monies with returns due, abstain from collecting fresh money or launching new schemes, submit asset inventory, restrained from securities market with continued restraint till winding up and refund complete, with attachment/recovery and references for civil/criminal action on failure.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 11(4)
- s. 19
- s. 12
- s. 291
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Disc Asset Lead India Limited
- Mr. Nithiyanantham Arunkumar
- Mr. Vivekanandam Janarthanan
- Mr. Srinivasan Chidambaram
- Mr. Shyamchander Thanikodi
- Mr. Nithiyanantham Malathi Umashankar
- Ms. S. Jeevalatha Sridhar
Holding
The Instalment Land Purchase Scheme and Cash Down Land Purchase Scheme of Disc Assets Lead India Limited satisfy section 11AA(2) and are Collective Investment Schemes run without SEBI registration. The company and its directors during the relevant period must wind up the schemes, refund investors with returns due, and remain restrained from the securities market.
Full text
Page 2 of 25 1. Securities and Exchange Board of India (“SEBI”), vide an interim Order dated August 20, 2015 prima facie observed that the company, Disc Assets Lead India Limited (“the Company” or “DALIL”) had launched Collective Investment Schemes (“CISs”) without obtaining certificate of registration for carrying on such activity from SEBI as required under section 12(1B) of the SEBI Act, 1992 and regulation 3 of the SEBI (Collective Investment Scheme) Regulations, 1999 (“CIS Regulation”). The interim order had also alleged that illegal mobilization of funds from the public through such unauthorized CISs amounted to a fraudulent practice in terms of regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice Relating to Securities Market) Regulations, 2003 (“the PFUTP Regulations”).
Page 3 of 25 (a) Scheme-wise amount mobilized (for both Cash Down Payment Plans and Instalment Payment Plans/"Land Installment Scheme"), since inception with year-wise break-up of amount mobilized, amounts repaid, etc. (b) Details of scheme-wise list of customers/investors (for both Cash Down Payment Plans and Instalment Payment Plans/"Land Installment Scheme") along with their names, addresses and telephone numbers including, • list of investors to whom land has been allotted and got registered, • list of investors to whom land was allotted but not registered in the name of the customers, • list of investors who opted for the rent out/sales option of the scheme, • list of investors who have been refunded.
Page 4 of 25 i. Directing them jointly and severally to refund any moneys/assets collected from the investors under the scheme, along with the requisite interest, ii. Directing them to wind up such plans/schemes, iii. Directing them to refrain from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities market for a particular period.
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Source: SecMarx — sebi:WTM/PS/197/IMD-CIS/SRO/MAR/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.