sebi:WTM/SR/CIS/WRO/01/01/2015
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Facts / Headnote
Interim preventive directions restraining company and its promoters/directors from collecting fresh moneys, launching new schemes, disposing/alienating scheme properties/assets, or diverting funds to group/associate entities; directing submission of full asset inventory and information sought by SEBI within 15 days and filing of reply within 21 days with opportunity of personal hearing; directions effective immediately until further orders.
Provisions invoked
- s. 11A
- s. 11(1)
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)
- Reg. 4(2)(t)
Parties
- M/s. Sai Prakash Organic Food Ltd.
- Mr. Pushpendra Singh Baghel
- Ms. Pushpanjali Singh Baghel
- Mr. Ranvajay Pratap Singh Baghel
- Mr. Mragendra Singh Baghel
- Mr. Dheerendra Krishan Pratap
- Mr. Shahendra Singh Baghel
Holding
SEBI prima facie held that the Joint Ventureship Scheme of Sai Prakash Organic Food Ltd. is an unregistered collective investment scheme and restrained the company and its six promoters/directors from mobilizing further funds, launching new schemes, or disposing/diverting assets pending final decision.
Full text
Page 2 of 16 Amrawati, Pachore, Rourkela, Berhampur, Bhawanipatna, Lohardaga, Ranchi, Sheorinarayan, Simdega, Umerkote, Berhampur, Samhalpur. • Copies of some circulars of 2013, issued by Sai Prakash Financial Advisory Services P. Ltd., which shows the commission/incentives being offered for targets achieved by agents. • Copy of an unsigned agreement on stamp paper (some pages) between Sai Prakash Organic Foods Ltd. and Sai Prakash Financial Advisory Services P. Ltd. • Soft copy of investor’s data (including their address & fund collection) of Sai Prakash Organic from 2010-11 to 2013-14.
Page 3 of 16 to agent(s), amount received by the company, amount to be repaid by the company, date of maturity (all these data duly certified by the company in hard & soft format) i. List of all branches with their address. j. List of all the properties acquired by the company from the funds of investors. k. Also, whether the company has transferred the title of these properties in favour of investors. If yes, details be provided. l. The current status of each of these properties including if any of these properties has been hypothecated/ pledged m. Details of commission structure including incentives payable to agents/ business associate of the company. n. Information, whether the amount deposited by investor towards plans are received in gross amount by the company or is received after deduction of commission by agent/ business associate. o. The details of arrangement/ agreement including Composite Business Agreement for agency entered by the company with SaiPrakash Financial Advisory Services P. Ltd. and Thind Finance Ltd. p. Certified copy of audited financial statement for the FY 2010-11, 2011-12 and 2012-13. Copy of detailed trial balance for 2013-14 and from April 2014 till date duly certified by the company. q. Copy of Income Tax Return filed by the company from FY 2009-10 till date. r. Details of any other similar scheme(s), if any, floated by the company or the group/associates company or companies in which the directors are also directors. s. Whether the company/ d
Page 4 of 16 Subsequently, clarifications were sought by SEBI, vide letter dated July 11, 2014 and July 24, 2014. These were provided by the company vide letter dated July 19, 2014 and August 02, 2014. Following are the documents provided by Sai Prakash Organic: • MoA and AoA of the company, • Details of the past and present directors of the company, • "Brochure" containing the schemes of the company, • "Pamphlet" giving details of its bye-laws for investment arrangements, • Copy of "Application Form" to be submitted by the investor for joining the “Joint Ventureship Scheme”, • A few copies of an application forms filed by an investor with the company, • Copy of "Certificate" issued by the company to the investor, • List of investors of the company (including name, address, plan name, maturity date, branch name etc.) as on March 31, 2014. • Details of scheme-wise amount mobilized by the company from 2010-11, 2011-12, 2012-13 and 2013-2014,
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Source: SecMarx — sebi:WTM/SR/CIS/WRO/01/01/2015. 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.