sebi:WTM/PS/37/CIS/ERO/MAY/2012
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Facts / Headnote
Directed MPS Greenery Developers Limited to deposit Rs 1169.39 crores in an interest-bearing escrow account with a nationalized bank, not to collect money or launch schemes, not to dispose scheme properties, and prohibited from operating in/accessing capital market till deposit; treated as show-cause notice why winding-up under Regulation 73 should not be ordered
Provisions invoked
- s. 11B
Regulations
- Reg. 69
- Reg. 71
- Reg. 73
- Reg. 65
- Reg. 11
- Reg. 10
- Reg. 71(1)
- Reg. 40
- Reg. 70
- Reg. 70(1)
Parties
- MPS Greenery Developers Limited
Holding
SEBI directed MPS Greenery Developers Limited to deposit Rs 1169.39 crores raised through collective investment schemes into an interest-bearing escrow account and restrained it from further collection, disposal of scheme properties and capital market access, issuing show-cause why winding-up under Regulation 73 should not be ordered.
Full text
Page 2 of 13 Regulation 69 of the SEBI (Collective Investment Scheme) Regulations, 1999, which prohibits raising money by a CIS even under the existing scheme, unless a certificate of registration is granted to by SEBI. Further, in light of the SEBI Inspection Report, the company has failed to satisfy me that the affairs of the company are not being conducted in a manner detrimental to the interest of the investors in terms of Regulation 70 (1) (b) of the aforesaid Regulations. In view of the aforesaid as company has not shown any compliance and respect to the legal requirements and the directions of the Hon’ble Delhi High Court by illegally continuing to raise the money as aforesaid and still has failed to refund the money to the investors, in spite of being given number of opportunities. This gives me the reason to believe that the affairs of the company are being conducted in a manner which is detrimental to the interest of investors and therefore I hereby reject the application of the company for the grant of registration. Therefore, as an existing Collective Investment Scheme, in terms of Regulation 73 of the captioned Regulations, the company is required to wind up its existing schemes and make repayments to the investors. Accordingly, the company is required to send an information Memorandum to the investors, who have subscribed to the scheme(s) within two months from the date of receipt of this intimation in terms of Regulation 73 (2) from SEBI. Further, on completion
Page 3 of 13 up and Repayment report in the SEBI prescribed format (copy enclosed) so as to reach SEBI within three and half months of the date of the Information Memorandum. Please note that a part of the report as at “Annexure A” is to be maintained by the company for a minimum period of 5 years from the date of the Information Memorandum and therefore should not be sent to SEBI.”
Page 4 of 13 If further material as aforesaid is furnished by the petitioners to SEBI within a period of four weeks from date, SEBI will reconsider the matter by giving an opportunity of hearing to the petitioner company and pass a reasoned
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Source: SecMarx — sebi:WTM/PS/37/CIS/ERO/MAY/2012. 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.