sebi:WTM/SR/CIS/70/03/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Interim order directing PAIL and its Directors not to collect fresh money, launch new schemes, dispose of assets, or divert funds; treated as show cause notice.
Provisions invoked
- s. 11A
- s. 11
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Prosperity Agro India Limited (PAIL)
- Mr. Santosh Shrawan Mali
- Mr. Santosh Kaluram Paygude
- Mr. Vanshree Tukaram Chidrawar
- Mr. Hrishikesh Vasant Kanase
- Mr. Dattatray Madhav Yadav
Holding
The schemes of 'Rearing of Calves/Goats/Buffaloes' offered by PAIL prima facie fulfill the conditions of a 'collective investment scheme' under Section 11AA of the SEBI Act, and PAIL's fund mobilizing activity prima facie amounts to a fraudulent practice under Regulation 4(2)(t) of the PFUTP Regulations, warranting interim directions against PAIL and its Directors.
Full text
Page 2 of 13 3. As a matter of preliminary inquiry, SEBI, vide letter dated January 22, 2014, inter alia, sought the following details / documents from PAIL in order to ascertain whether or not PAIL is carrying on 'Collective Investment Schemes' in terms of Section 11 AA of the SEBI Act, 1992 (hereinafter referred to as "SEBI Act") :
Page 3 of 13 activities such as sale of milk products, sale of bio-fertilizer, and sale of Bags etc. PAIL expressly denied any fund mobilization/ pooling of funds from the general public.
Page 4 of 13 under the ambit of ‘collective investment scheme’ in accordance with Section 11AA of the SEBI Act, 1992 (hereinafter referred to as "SEBI Act").
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/SR/CIS/70/03/2015. 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.