sebi:WTM/SR/CIS-WRO/42/08/2014
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; HNC and its promoters/directors directed not to collect fresh money, not to launch new schemes/plans or float new companies, not to dispose/alienate scheme properties/assets, not to divert funds, to submit full inventory of assets and furnish information sought by SEBI letter dated December 03, 2013; directions effective immediately until further orders.
Provisions invoked
- s. 11A
- s. 11(4)
- s. 12
- s. 11
Regulations
- Reg. 65
- Reg. 3
- Reg. 199
- Reg. 4(2)
Parties
- HNC Infrastructures & Shares India Ltd.
- Mr. Santosh Kumar Saket
- Mr. Ramnaresh Saket
- Mr. Ramadhar Choudhary
- Mr. Satish Kumar Arya
Holding
HNC Infrastructures & Shares India Ltd. and its four directors were prima facie held to be floating/sponsoring an unregistered collective investment scheme in the guise of booking of land/plots for development in violation of Section 12(1B) of the SEBI Act and CIS Regulations. Interim preventive directions were issued restraining further fund mobilization, new schemes, disposal of assets and diversion of funds pending final decision.
Full text
Page 2 of 14 (h) Address of all branches of HNC, operating in India, (i) Certified copy of audited financial statement for the FY 2009-10, 2010-11, 2011-12 and 2012-13.Trial Balance for 2013-14 (from April 2013 till date of submission of information), (j) Copy of Income Tax Return (ITR) filed by HNC for the last three years, (k) Details of the regulatory approvals obtained by HNC, if any, for provision of accidental death/disability benefits to investor, under the schemes. (l) Details of any other similar scheme(s), if any, floated by HNC or its group/associates company.
Page 3 of 14 Book, "Registration Letter" etc. stated to have been issued by HNC to the investors as forwarded by the aforesaid complainant. In addition to this, clarifications were also sought from HNC in respect of the following discrepancies found in the financial statements forwarded to SEBI by HNC,
Page 4 of 14 letter from HNC in his favour to give submission to SEBI on behalf of HNC. HNC, vide the said letter, while stating …it is not prime object of the company to provide any SEBI Collective Investment Scheme made under Regulation 1999…..company is purchasing the land on behalf of investors, develop it and then transfer to the members or investors in due time. ……However,… in any respect this scheme is covered under CIS as per recommendation of SEBI, the management of the company is willing to get registration under the said scheme…..", furnished the following information/documents:
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-WRO/42/08/2014. 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.