sebi:WTM/PS/72/ERO/CIS/FEB/2014
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Facts / Headnote
Directions issued restraining the company and its directors from accessing the securities market, prohibiting collection of money or launching schemes, and directing winding up of the collective investment schemes and refund of monies with returns within three months.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 11(4)
- s. 19
- s. 12
- s. 11(2)
- s. 1A
Regulations
- Reg. 65
- Reg. 3
Parties
- Green Ray International Limited
- Mr. Mir Shahiruddin (Managing Director)
- Mr. Mir Tahiruddin
- Mr. Ayub Saha
- Mr. Khalik Saha
Holding
The six plans launched by Green Ray International Limited (Real Gold Plan, Ever Green Plan, Marriage Plan, Tycoon Plan, Happy Nation Plan, and Green Line Plan) constitute collective investment schemes under section 11AA of the SEBI Act, and the company operated them without the certificate of registration required under section 12(1B) of the SEBI Act and regulation 3 of the CIS Regulations.
Full text
Page 2 of 22 2. Simultaneously, SEBI also conducted inquiry in order to ascertain whether the Company was engaged in fund mobilising activity from the public by floating or sponsoring or launching collective investment schemes as defined under section 11AA of the Securities and Exchange Board of India Act, 1992 ("the SEBI Act"). During the course of the inquiry, SEBI had advised (vide letter dated April 05, 2013) the Company to forward the following documents :
Page 3 of 22 (c) Structure of the Plans/Schemes; (d) Details of the Scheme(s) wise amount mobilized by you till date along with the number of investors under the schemes; (e) Promises or assurances or assured returns made in the scheme(s); (f) Copies of the Offer documents, application form, pamphlets, brochures of the scheme(s) launched; (g) Sample copies of the registration letter and allotment letter issued to the investors who subscribed to your scheme(s); (h) Sample copies of the agreement letter/contract required to be entered into by investor/applicant under your scheme(s); (i) Options available with the investor if he does not want to hold his investment till maturity; (j) Whether any instrument is issued to the investors after receipt of fund; (k) If such instruments are issued whether they are transferable; (l) In case the ‘Scheme(s)’ pertain to booking/ purchase of goods/ properties, please specify the options available with the investor if he does not want to posses the good/ property after payment of initial amount; (m) To confirm whether ‘Scheme(s)’ floated by the Company fall under the SEBI (Collective Investment Schemes) Regulations, 1999.
Page 4 of 22 (f) Copy of fresh certificate of incorporation of the Company subsequent to the change of name from "Green Ray Marketing Services Private Limited" to "Green Ray Marketing Services Limited". (g) Copy of certificate of incorporation dated 22.12.2004 of Green Ray Marketing Services Private Limited. . (h) Copy of Memorandum of Association of the Company. (i) Copy of Articles of Association of the Company. (j) Copy of the audited balance sheet of the Company as at March 31, 2010 with profit and loss account. (k) Copies of the Income Tax Returns dated 31.12.2010 and 30.09.2009 of the Company. (l) Copy of balance sheet as at March 31, 2009 with profit and loss account. (m) Copy of the balance sheet of the Company as at March 31, 2008. (n) Copies of VAT documents. (o) The Company has not issued/allotted any type of preference shares or debentures to any person and therefore there is no application form, prospectus, subscription list, advertisement, etc. (p) It has not launched any type of scheme in the past and that it is dealing with direct selling and purchasing of bullions i.e., gold and silver coins for which it has filed VAT returns. The Company does not indulge in collective investment schemes and therefore it is not required to obtain a certificate of registration under the CIS Regulations. (q) As it is not running any type of schemes, it is not able to provide the statement of mobilization and deployment of funds.
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Source: SecMarx — sebi:WTM/PS/72/ERO/CIS/FEB/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.