sebi:WTM/PS/87/CIS-NRO/NOV/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: winding up of CIS and refund of investor monies within three months, restraint from securities market for 4 years, asset inventory, prohibition on alienation of assets, and referral for prosecution/winding up in case of non-compliance.
Provisions invoked
- s. 11A
- s. 11
- s. 24
- s. 19
- s. 12
- s. 58A
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Sunshine Global Agro Limited
- Mr. Lekh Narayan Chand
- Mr. Mokarram Mohammad
- Mr. Mohammad Ahteshamul Haq
- Mr. Anand Kumar Jha
- Mr. Wasim Khan
- Mr. Ashif Khan
- Mr. Mohammad Faisal
- Mr. Bibeka Nand Mandal
Holding
Sunshine Global Agro Limited and its directors operated an unregistered collective investment scheme in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations, and also contravened Regulation 4(2)(t) of the PFUTP Regulations. Directions were issued for winding up the schemes, refunding investors, and restraining the noticees from the securities market for four years.
Full text
Page 2 of 15 CISs. This Order directed Sunshine and its directors namely Mr. Lekh Narayan Chand, Mr. Mokarram Mohammad, Mr. Mohammad Ahteshamul Haq, Mr. Anand Kumar Jha, Mr. Wasim Khan and Mr. Ashif Khan (hereinafter collectively referred to as the ‘noticees’): “● not to collect any fresh money from investors under its existing scheme(s); ● not to launch any new schemes or plans; ● to immediately submit the full inventory of the assets owned by SGAL; ● not to dispose of any of the properties or alienate the assets of the existing scheme(s); ● not to divert any funds raised from public at large, kept in bank account(s) and/or in the custody of the company.”
Page 3 of 15 3. Before proceeding further, SEBI granted an opportunity of personal hearing to the Company and its directors on April 20, 2015. An intimation regarding the same was sent to all the noticees vide letter dated March 24, 2015. The hearing notices sent to the noticees namely Mr. Mokarram Mohammad, Mr. Anand Kumar Jha, Mr. Wasim Khan and Mr. Ashif Khan had returned undelivered. SEBI vide its letter dated April 13, 2015, asked the Company to intimate the noticees namely Mr. Mokarram Mohammad, Mr. Anand Kumar Jha, Mr. Wasim Khan and Mr. Ashif Khan about the date of hearing. On the date fixed for the personal hearing, none of the noticees turned up for the personal hearing. In the interest of justice, one more opportunity of personal hearing was granted to the noticees on May 15, 2015. An intimation regarding the same was sent to the noticees vide letter dated May 08, 2015. However, none of the noticees turned up for the personal hearing on such date also.
Page 4 of 15 b. As per the details provided by Sunshine vide its letter dated December 31, 2013, it had two schemes i.e. ‘Sale of Jhatropa Bush group’ and ‘Sale of plant/ trees’. I have seen the brochure submitted by Sunshine vide letter dated December 31, 2013, the relevant portions of the same are: “GREEN REVOLUTION FRUIT FOR NATION … … Since last five years company is running in profit. … valuer … has valued 5 to 7 years old trees Rs.1500/- per tree, for which we are offering for sale @ Rs.1,000/- per Tree.
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/87/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.