sebi:WTM/PS/39/EFD/CIS/MAY/2016
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Facts / Headnote
Directions issued: noticees restrained from collecting money or launching CIS, directed to wind up CIS and refund investors with returns, provide asset inventory, restrained from accessing securities market for 4 years, with references to Ministry of Corporate Affairs and preservation of SEBI's right to initiate prosecution/adjudication.
Provisions invoked
- s. 11A
- s. 24
- s. 11(4)
- s. 19
- s. 12
- s. 11(2)
- s. 58A
- s. 620A
- s. 45
- s. 291
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Anmol India Agro-Herbal Farming and Dairies Care Company Limited
- Mr. Mohammad Khalid Memon
- Mr. Mohammad Junaid Memon
- Mr. Mohammad Javed Memon
- Mr. Mohammad Umar Memon
Holding
The Company's schemes for sale and development/maintenance/rearing of farms/animals/plants satisfy all four conditions of section 11AA(2) of the SEBI Act and constitute an unregistered Collective Investment Scheme, contravening section 12(1B) of the SEBI Act read with regulation 3 of the CIS Regulations. The directors/promoters are liable for the contraventions as they were on the board from incorporation when mobilization commenced.
Full text
Page 2 of 32 Fraudulent and Unfair Trade Practice Relating to Securities Market) Regulations, 2003 (“the PFUTP Regulations”). The interim order mentioned that Mr. Mohammad Khalid Memon, Mr. Mohammad Junaid Memon, Mr. Mohammad Javed Memon and Mr. Mohammad Umar Memon are the directors of the Company.
Page 3 of 32 iv. all documents/information and clarifications sought by SEBI, vide letters dated March 11, 2014, March 26, 2014, May 23, 2014 etc. and not yet submitted.
Page 4 of 32 (d) SEBI had erroneously found that the Company was operating CIS and has entirely relied on the letter forwarded to it by the Office of Superintendent of police, District Rajanandgaon. However, SEBI did not provide them with a copy of the said letter or seek comments on the same before passing the interim order.
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Source: SecMarx — sebi:WTM/PS/39/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.