sebi:WTM/PS/30/CIS/NRO/AUG/2014
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Facts / Headnote
PACL's schemes held to be Collective Investment Schemes operated without SEBI registration; PACL, its promoters and directors directed to abstain from collecting money or launching/carrying out CIS including schemes identified as CIS in the Order and to refund monies collected.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 19
- s. 11(1)
- s. 12(1)
- s. 12
- s. 11(2)
- s. 30
- s. 58A
- s. 54
- s. 2(1)
Regulations
- Reg. 69
- Reg. 65
- Reg. 3
- Reg. 199
- Reg. 5
- Reg. 4(2)(t)
- Reg. 65(e)
Parties
- PACL Limited
- Mr. Tarlochan Singh
- Mr. Sukhdev Singh
- Mr. Gurmeet Singh
- Mr. Subrata Bhattacharya
- Mr. Nirmal Singh Bhangoo
- Mr. Anand Gurwant Singh
- Mr. Tyger Joginder
- Mr. Gurnam Singh
Holding
PACL's land-related plans are Collective Investment Schemes under Section 11AA of the SEBI Act operated without registration. PACL, its promoters and directors including Mr. Tarlochan Singh, Mr. Sukhdev Singh, Mr. Gurmeet Singh and Mr. Subrata Bhattacharya shall abstain from collecting money or launching/carrying out CIS and refund monies collected.
Full text
Page 2 of 92 Customer Association For Securities and Exchange Board of India : Ms. Anitha Anoop, Deputy Legal Adviser Mr. Narendra Rawat, Deputy General Manager Ms. Jyoti Sharma, Assistant General Manager Mr. Pradeep Kumar, Assistant Legal Adviser ___________________________________________________________________________
Page 3 of 92 2. In order to protect the interest of the investors and to ensure that only legitimate investment activities are carried on, vide press release dated November 18, 1997, the Government of India communicated its decision that schemes through which instruments such as agro bonds, plantation bonds, etc., issued by the entities, would be treated as schemes under the provisions of the SEBI Act and directed Securities and Exchange Board of India (hereinafter referred to as 'SEBI') to formulate Regulations for the purpose of regulating these CISs. Thereafter, several press releases and newspaper advertisements/ notices were issued by SEBI from time to time in leading newspapers, bringing to the notice of the investors and the persons concerned, the various instructions issued by SEBI/ Central Government in respect of the functioning of the CIS. The press releases further stated that instruments such as agro bonds, plantation bonds should be treated as CIS, and are subject to the jurisdiction of the SEBI Act. More specifically, SEBI had issued a press release dated November 26, 1997, inter alia, stating that the regulations for CIS are under preparation and till they are framed and finalized, no person can sponsor any new CIS. It was further notified vide this press release that the persons desirous of availing the benefit provided under the proviso to Section 12(1B) of the SEBI Act, may send such information within 21 days. Thereafter, SEBI also issued another public no
Page 4 of 92 (iv) the investors do not have day to day control over the management and operation of the scheme or arrangement.
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Source: SecMarx — sebi:WTM/PS/30/CIS/NRO/AUG/2014. 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.