sebi:WTM/SR/SEBI/CIS-SRO/45/09/2016
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Facts / Headnote
Representations disposed of; SEBI directed to take up the case with EOW and to refrain from further coercive steps pending EOW proceedings
Provisions invoked
- s. 19
- s. 28A
- s. 149
- s. 406
Regulations
- Reg. 65
Parties
- M/s Disc Asset Lead India Limited (DALIL)
- Mr. Nithiyanantham Arunkumar
- Mr. Vivekanandam Janarthanan
- Mr. Srinivasan Chidambaram
- Mr. Shyamchander Thanikodi
- Mr. Nithiyanantham Malathi Umashankar
- Ms. S. Jeevalatha Sridhar
Holding
SEBI rejected DALIL's requests for appointment of a committee, SEBI officers on its board, repayment through Nidhi Company accounts, and a six-month extension, but directed SEBI to coordinate with EOW and to refrain from further coercive steps until EOW completes its proceedings.
Full text
Page 2 of 10 “(i) to abstain from collecting any money from the investors or launch or carry out any Collective Investment Schemes including the schemes which have been identified as a Collective Investment Scheme in the Order; (ii) to wind up the existing Collective Investment Schemes and refund, through ‘Bank Demand Draft’ or ‘Pay Order’, the money collected by the said company under the schemes with returns which are due to its investors as per the terms of offer within a period of three months from the date of the Order and thereafter within a period of fifteen days, submit a winding up and repayment report to SEBI in accordance with the SEBI (Collective Investment Schemes) Regulations, 1999, including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging such refunds; (iii) not to alienate or dispose of or sell any of the assets of the aforesaid company except for the purpose of making refunds to its investors, as directed above; (iv) to file a certificate of such completion with SEBI, within a period of 15 days, from two independent peer reviewed Chartered Accountants who are in the panel of any public authority or public institution. For the purpose of this Order, a peer reviewed Chartered Accountant shall mean a Chartered Accountant, who has been categorized so by the Institute of Chartered Accountants of India (‘ICAI’); (v) to immediately submit the complete and detailed inve
Page 3 of 10 appellant accepts the decision of SEBI and submits that steps have been taken to implement the order of SEBI, we grant extension of three months’ time to comply with the order passed by the WTM of SEBI on March 30, 2016. It is made clear that the implementation of the order passed by WTM of SEBI on March 30, 2016 shall hence forthwith be under the supervision of SEBI and it would be open to SEBI to grant further extension of time if need arises. The appellant is at liberty to pay to investors through NEFT mode in addition to other permissible modes of payments. Appellant shall furnish proof of payment to SEBI from time to time.”
Page 4 of 10 company wishes to reassure that it is financially capable of repaying all its investors and for the same it is also willing to submit the necessary documents reflecting its financial capacity, if so required. The supervision and monitoring of SEBI would reassure the buyers of the properties and the company would be able to satisfy the repayment to the investors at the earliest. e) It is further being submitted that the company is facing difficulties with the potential buyers of the land. The company is facing a situation that the potential buyers are hesitating to buy the properties stating that there is a chance that the sale will be challenged and thrown as per the law of the state. f) Apart from the concern about the notice published by EOW, the potential buyers are apprehensive to proceed further with the transaction due to the provisions mentioned in the Tamil Nadu Protection of Interest of Depositors (In Financial Establishment) Act, 1997. It is further submitted that according to the potential buyers, the provision contained in Section 8 of the aforesaid Act would invite judicial proceedings against them in the event of any default made by the company. It is further stated when a retired judge is appointed as nominee director/committee member to dispose the property, the company can satisfy the buyer and sell its properties without any hurdle and settle all the investors with the timeframe stipulated by the company. g) The remuneration to the nominee direc
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Source: SecMarx — sebi:WTM/SR/SEBI/CIS-SRO/45/09/2016. 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.