sebi:WTM/SR/CIS/07/03/2014
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Facts / Headnote
Prima facie finding that RTSCL's Holiday Plans including Comfort Holiday Plan are collective investment schemes run without registration; RTSCL and its directors directed to not collect money, not launch new schemes, not dispose/alienate scheme properties/assets, not divert funds, and to submit investor list and room inventory within fifteen days; order to operate until further orders and treated as show cause notice requiring reply within fifteen days.
Provisions invoked
- s. 11A
- s. 12
- s. 11
- s. 209
Regulations
- Reg. 65
- Reg. 3
Parties
- Royal Twinkle Star Club Private Ltd (CIN U55101MH2008PLC181944)
- Shri Omprakash Basantlal Goenka
- Shri Prakash Ganpat Utekar
- Shri Venkatraman Natrajan
- Shri Narayan Shivram Kotnis
Holding
RTSCL is prima facie engaged in fund mobilising activity by floating/sponsoring collective investment schemes without SEBI registration in violation of section 12(1B) and CIS Regulations, and is therefore subjected to interim restraining directions; the order is also treated as show cause notice for further action under Regulations 65 and 73.
Full text
Page 2 of 12 d. Application forms that are required to be submitted by investors to participate in the schemes of RTSCL. e. Sample copies of the registration letter and allotment letter issued to the investors who subscribed to the schemes. f. Sample copies of the agreement letter / contract required to be entered into by investor /applicant under the schemes. g. Structure of the Plans/ Schemes. h. Main terms and conditions of the plan/ schemes. i. Details of the scheme wise amount mobilized, along with the number of investors under the schemes. j. Number of investors /applicants who opted for the rent out / sales option of the scheme. k. Details of the regulatory approvals obtained, if any, provision of accidental death / disability benefits to investor, under the schemes of RTSCL. l. Copies of annual reports/ financial statements for the last three years.
Page 3 of 12 6. As no further information was received by SEBI from RTSCL, SEBI vide another letter dated March 19, 2013 advised RTSCL to furnish the following additional information:- a. Total number of individuals/customers who have subscribed to the Comfort Holiday Plan (category wise and amount wise details) b. Details (numbers of rooms available, etc.) about the accommodation provided/projected to be provided. c. Total number of individuals/customers who have actually availed the services (accommodation) under the plan(s) subscribed to the plan(s). d. Details of assets held by RTSCL. e. Details of amount refunded by the company towards principal investments and towards interest (customer wise).
Page 4 of 12 8. In view of the aforesaid facts and on the basis of the material available on record, I shall now proceed to determine whether the schemes being operated by RTSCL are a ‘collective investment scheme’ in terms of section 11AA (2) of the SEBI Act.
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Source: SecMarx — sebi:WTM/SR/CIS/07/03/2014. 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.