sebi:WTM/SR/CIS-SRO/25/06/2014

SEBI · SEBI · 2013-10-10 · S. Raman, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Prima facie finding of unregistered collective investment scheme with interim directions restraining collection, disposal and diversion and requiring inventory and investor details

Provisions invoked

• s. 11A
• s. 11(4)

Regulations

• Reg. 65

Parties

• Nikhara Bharath Construction Company Ltd. (CIN: U70200KA2004PLC034675)
• Mr. Kodandarama Pilliah (DIN No. 00548550)
• Mrs. Bharathi Balakrishna Murthy (DIN No. 00548571)
• Mrs. Sreedevi Balakrishnamurthy (DIN No. 00548882)

Holding

Nikhara's development and maintenance of plot scheme prima facie falls within the definition of collective investment scheme under Section 11AA of the SEBI Act and was being operated without SEBI registration; interim preventive directions were issued against Nikhara and its directors.

Full text

Page 2 of 11 May 15, 2013, informed that "The company intended to start the "Tree Booking Scheme" few months ago. Since the project was not viable, we have shelved the scheme. No brochures/pamphlets were printed or any advertisement for such scheme was given in the past."

Page 3 of 11 i. Nikhara Bharath Construction Company Ltd. was incorporated on September 13, 2004. As per the details available on the website of Nikhara Group, the registered office of Nikhara is at No. 27, 10th Main, Srinagar (Near Bus Terminus), Bangalore -560050.

Page 4 of 11 iv. After receiving the amount from investors, Nikhara issues "Allotment Letters" to them. Following are the clauses noted from the copy of "Allotment Letter",

Source: SecMarx — sebi:WTM/SR/CIS-SRO/25/06/2014. 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.