sebi:WTM/PS/86/CIS-NRO/NOV/2015
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Facts / Headnote
Held schemes are unregistered Collective Investment Schemes in violation of Section 12(1B) SEBI Act and Regulation 3 CIS Regulations; directed company and directors to cease collection, wind up schemes and refund with returns within three months, file inventory and repayment report, debarred from securities market and fund mobilization for four years with extended restraint and referrals on default.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 19
- s. 12
- s. 11(2)
- s. 58A
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Nicer Green Housing and Infrastructure Developers Limited
- Mr. Pipal Singh Sidhu
- Mr. Ranjit Singh
- Ms. Surinder Kaur
- Mr. Karanjit Singh
Holding
Nicer Green Housing and Infrastructure Developers Limited operated farm-land plot plans satisfying all four conditions of Section 11AA(2) and therefore carried on unregistered Collective Investment Schemes in contravention of Section 12(1B) and Regulation 3, with its directors jointly responsible. The company and directors were directed to wind up, refund investors with returns, and were restrained from the securities market for four years.
Full text
Page 2 of 20 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’).
Page 3 of 20 the reply on the ground that the director of the Company namely Mr. Karamjeet Singh, who is well conversant with the matter is seriously ill. In the meantime, SEBI had received certain investor complaints, which were forwarded to the Company on March 05, 2015.
Page 4 of 20 d. The jurisdiction of SEBI is restricted to the CISs who are operating in the securities market as stated in the press release dated November 26, 1997 and December 18, 1997, issued by SEBI. The intention of law to regulate CIS which were/ would be operating in the securities market by issuing securities in the form of the unit certificate. With a view to confer jurisdiction on SEBI to regulate such unit certificates, the Securities Contracts (Regulations) Act, 1956 was also amended by inserting clause (ib) in Section 2(h) to treat such unit certificates as ‘securities’. e. The Company has not issued any unit certificate or plantation/ agro bond which can be treated as ‘securities’ within the meaning of section 2(h)(ib) of the Securities Contracts (Regulations) Act, 1956 or unit certificate within the meaning of the CIS Regulations. f. The land purchase scheme launched by the Company cannot be viewed as CIS within the meaning of Section 11AA and Section 12(1B) of the SEBI Act, as the said schemes do not satisfy any of the four conditions as stipulated under section 11AA of the SEBI Act. g. There is no scheme which envisages pooling of investment from the investors and investment of such amount into common asset to be acquired in the name of any scheme. The standard agreement has not used the expression ‘scheme’ and refers to the expression ‘plan’ which means Cash Down Payment Plan and Installment Payment Plan. h. The agreement envisages development of the land fo
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Source: SecMarx — sebi:WTM/PS/86/CIS-NRO/NOV/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.