sebi:WTM/SR/CIS-WRO/ILO/26/02/2015
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Facts / Headnote
Prima facie finding that SFAL's schemes are unregistered collective investment schemes; SFAL and its directors directed not to collect fresh money, not to launch new schemes/plans or float new companies, not to dispose/alienate assets or divert funds, and to furnish information sought by SEBI within 15 days; directions effective immediately until further orders.
Provisions invoked
- s. 11A
- s. 12
Regulations
- Reg. 3
- Reg. 4(2)(t)
- Reg. 65
Parties
- Suvidha Farming & Allied Limited (SFAL)
- Shri Vinod Kumar Shankhwar
- Shri Rajendra Karn Rajpoot
- Shri Pardeshi Ram
- Shri Jagdish Bisvas
- Shri Rajneesh Dutta
Holding
SFAL's cattle/land 'Joint Venture' plans were prima facie held to be collective investment schemes operated without SEBI registration, and SFAL and its five directors were by interim order restrained from collecting fresh money, launching new schemes, and disposing of assets.
Full text
Page 2 of 21 d. Copies of application forms that are required to be submitted by investors/applicants to participate in SFAL's schemes. e. Sample copies of the regulations letter and allotment letter issued to the investors who subscribed to SFAL's schemes. f. Sample copies of the agreement letter/ contract required to be entered into by investor/applicant under SFAL's schemes. g. Details of the scheme wise amount mobilized by SFAL till date along with the number of investors under the schemes. h. Certified copy of audited financial statement for the FY 2009-10, 2010-11 and 2011- 12. i. Copy of Income Tax Return filed by SFAL for the last three years. j. Details of the regulatory approvals obtained by SFAL, if any, for provision of accidental death/disability benefits to investor, under SFAL's schemes. k. Details of any other similar scheme(s), if any, floated by SFAL or its group/associates company.
Page 3 of 21 a. Name, address of each investor and amount deposited by each of them with plan details & date of investment (from start of company till date); b. Details of how many persons have been refunded the amount after expiry of agreement; c. In case amount taken from investor, details for amount appropriated by SFAL with
Page 4 of 21 b. The details of year-wise amount mobilizeddid not tally with the total amount paid by investors as per the data on investors.SFAL later advised that the difference is on account of some deposits repaid on maturity. c. The Customer Service Centre (CSC) address indicated in certificates issued to two investors were not reflected in the list of nine branches submitted by SFAL. d. SFAL had submitted details of repayments made to investors on maturity. SFAL was advised to provide a certificate from the management as well as auditor certifying the repaymentsto investors as per the list provided to SEBI. This has not been done till now. e. As per the audited financial statements as on March 31, 2013 submitted by SFAL, an amount of `3,53,04,947/-was indicated as expenses towards "ORC Commission". SFAL was advised to provide the list of all its agents (with their designation & address) alongwithyear-wise commission paid from start till date. f. SFAL was also advised to provide copy of documents evidencing their submission of investments (in land, gold and FDRs) made from funds mobilized from public.
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Source: SecMarx — sebi:WTM/SR/CIS-WRO/ILO/26/02/2015. 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.