sebi:WTM/PS/28/EFD/CIS/MAY/2016
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Facts / Headnote
Directions issued: noticees restrained from collecting money, directed to wind up CIS and refund investors, restrained from securities market for 4 years, with further consequences for non-compliance.
Provisions invoked
- s. 11A
- s. 24
- s. 19
- s. 12
- s. 11(2)
- s. 45
- s. 58A
- s. 620A
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Sai Multi Services
- Mr. Sanjay B Tenginkai
Holding
The schemes launched and operated by Sai Multi Services and its proprietor Mr. Sanjay B. Tenginkai constitute a Collective Investment Scheme under section 11AA of the SEBI Act, 1992, and having been carried on without registration from SEBI, the noticees are directed to wind up the schemes, refund investors, and are restrained from the securities market for four years.
Full text
Page 2 of 13 “In view of the forgoing, I, in exercise of the powers conferred upon me under Sections 11(1), 11(4) and 11B of the SEBI Act, 1992 read with Regulation 65 of CIS Regulations, hereby direct Sai Multi Services and its Proprietor, Mr. Sanjay B Tenginkai, (PAN: AFDPT9966L):
Page 3 of 13 5. I have considered the interim order and other material available on record. I note that the following observations made in the interim order:
Page 4 of 13 3.1 Requirement of Funds The project is an agro based project and requires further funds to the tune of Rs.25 crores over a period of 24 months. Looking at the recessionary market and risk factors involved, banks are not willing to finance the project..... After the second year of operation the proprietors will convert the proprietorship concern into a public/private limited company with adequate share capital. The promoter will then offer the equity to the investors for appropriate face value....... The project at present can be financed only with the funding by private investors who are willing to invest in the project with returns……
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Source: SecMarx — sebi:WTM/PS/28/EFD/CIS/MAY/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.