sebi:WTM/PS/71/CIS-NRO/FEB/2015
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Facts / Headnote
Directions issued: (a) HBN and its directors/former directors restrained from collecting money or launching CIS; (b) restrained from accessing securities market for four years; (c) HBN and certain directors directed to wind up existing CIS and refund money collected from investors.
Provisions invoked
- s. 11A
- s. 11
- s. 19
- s. 12
- s. 58A
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
- Reg. 65(e)
Parties
- HBN Dairies & Allied Limited
- Mr. Harmender Singh Sran
- Mr. Satnam Singh Randhava
- Mr. Amandeep Singh Sran
- Mr. Gajraj Singh Chauhan
- Ms. Manjeet Kaur Sran
- Ms. Jasbeer Kaur
- Mr. Rakesh Kumar Tomar
- Mr. Sukhdev Singh Dhillon
- Ms. Sukhjeet Kaur
Holding
HBN Dairies & Allied Limited's schemes were held to be Collective Investment Schemes under Section 11AA of the SEBI Act, and HBN was found to have operated them without registration in contravention of Section 12(1B) and Regulation 3 of the CIS Regulations. Directions were issued restraining HBN and its directors from collecting money, accessing the securities market for four years, and requiring wind-up and refund of investor money.
Full text
Page 2 of 35 3. Thereafter, SEBI again vide its letter dated February 01, 2011, advised HBN to submit the information/ documents sought earlier vide letter dated February 09, 2009. SEBI vide its letters dated March 11, 2011, April 20, 2011 and December 07, 2011, issued reminders to HBN for submitting the information/ documents. Meanwhile, SEBI also sought information from the Registrar of Companies (hereinafter referred to as 'RoC'), Delhi vide letter dated December 07, 2011, in order to ascertain whether HBN has filed annual accounts for the financial years 2009-10 and 2010-11.
Page 3 of 35 reply, it would be presumed that HBN had no explanation to offer and that SEBI shall proceed in the matter on the basis of the material available on record.
Page 4 of 35 always remains with the Company and the customer has option to buy, in case, if so desired by him. g. The payments are made by the customers towards fixed assured plans in installments with various risk covering factors. Therefore, the condition of day to day participation of the customer does not arise. Also, the customer can withdraw from the plans at any point of time as per the rules laid down for the said purpose. h. Till date HBN has not defaulted in any of its commitments.
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Source: SecMarx — sebi:WTM/PS/71/CIS-NRO/FEB/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.