sebi:WTM/PS/67/IMD-CIS/JAN/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Directions issued: noticees restrained from collecting money or launching CISs; directed to wind up existing CISs and refund monies with promised returns within three months; assets not to be alienated except for refunds; complete inventory of assets to be submitted; restrained from accessing securities market for four years; failure to comply triggers extended market restraint, references to police for criminal cases, reference to Ministry of Corporate Affairs for winding up, and attachment/recovery proceedings.
Provisions invoked
- s. 11A
- s. 24
- s. 19
- s. 12
- s. 301
Regulations
- Reg. 65
- Reg. 3
- Reg. 2(1)
- Reg. 4(2)(t)
- Reg. 65(e)
Parties
- Sai Prasad Properties Limited
- Mr. Balasaheb K. Bhapkar
- Mrs. Vandana B. Bhapkar
Holding
The plans/schemes floated by Sai Prasad Properties Limited under its 'joint venture' model satisfy all four conditions of section 11AA(2) of the SEBI Act and are therefore collective investment schemes; having operated them without SEBI registration under section 12(1B) read with regulation 3 of the CIS Regulations, the Company and its directors Mr. Balasaheb K. Bhapkar and Mrs. Vandana B. Bhapkar are directed to wind up the schemes and refund all monies with promised returns.
Full text
Page 2 of 25 illegitimate fund mobilizing activities through the alleged CISs. The SEBI Order had directed the Company and its directors, namely, Mr. Balasaheb K. Bhapkar and Mrs. Vandana B. Bhapkar - a. not to collect any more money from investors including under the existing schemes; b. not to launch any new schemes; c. not to dispose of any of the properties or alienate any of the assets of the schemes; d. not to divert any funds raised from public at large which are kept in bank account(s) and/or in the custody of the company.
Page 3 of 25 d) The Company through the 'joint venture', has a number of ongoing projects and farm development activities, which requires timely investments. This is being hampered.
Page 4 of 25 amount paid to the co-venture associates is made through the participation Subscription Structure of the Company. j) In pursuance of its Main Objects, the Company has been exercising/developing its activities/projects with various persons who associate themselves with the ongoing projects through joint venture participation. k) The participation of associates is through a joint venture agreement, as per the prescribed format of the Company. Under the joint-venture system, the Company also undertakes various project and farm development projects and associates of the Company are allotted a unit of project which is based on their participation value as per the different business plans/schemes/projects which are underway.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/PS/67/IMD-CIS/JAN/2015. 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.