sebi:WTM/SR/IMD/CIS/107/06/2015
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Facts / Headnote
Interim directions issued restraining Citrus and its Directors from collecting fresh money, launching new schemes, disposing of assets, and diverting funds; order treated as show cause notice as to why the plans should not be held as a collective investment scheme.
Provisions invoked
- s. 11A
- s. 12
- s. 11
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Citrus Check-Inns Limited
- Mr. Omprakash Basantlal Goenka
- Mr. Prakash Ganpat Utekar
- Mr. Venkatraman Natarajan
- Mr. Narayan Shivram Kotnis
Holding
The holiday plans offered by Citrus prima facie constitute a 'collective investment scheme' under Section 11AA of the SEBI Act, and Citrus and its Directors are restrained from mobilizing further funds pending investigation.
Full text
Page 2 of 20 3. As a matter of preliminary inquiry into whether or not Citrus is carrying on activities of 'collective investment scheme' in terms of Section 11AA of the SEBI Act, 1992 (hereinafter referred to as "SEBI Act"), SEBI vide letter dated February 18, 2014 sought the following information from Citrus viz.-
Page 3 of 20 following documents: i. Memorandum and Articles of Association of the company. ii. Details of the past and present directors of the company. iii. Copies of brochures / application forms of a few holiday plans of Citrus. iv. Certified copies of audited financial statements for the FY 2011-12 and 2012-13. v. Copy of Income Tax Returns filed by the Citrus FY 2011-12 and 2012-2013.
Page 4 of 20 b. Copies of application forms that are required to be submitted by the customers while purchasing Citrus's holiday plans; c. Copies of Holiday Entitlement Certificates which Citrus issues to a customer on purchase of holiday plans; d. Total amount of plan - wise sale achieved by Citrus as on 31.03.13."
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Source: SecMarx — sebi:WTM/SR/IMD/CIS/107/06/2015. 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.