sebi:WTM/SR/SEBI-SRO/IMD/142/07/2015
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Facts / Headnote
Interim cease and desist directions issued; order treated as show cause notice
Provisions invoked
- s. 11A
- s. 12
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- Assure Agrowtech Limited
- Mr. Sengan Thangappalam
- Mr. Shanmugam Rajendran
- Mr. P. Saravanan
- Mr. R. Devadoss
- Dr. V. Venkataramanujam
Holding
The schemes offered by Assure Agrowtech Limited for sale/purchase and development of livestock/poultry prima facie satisfy all four conditions of Section 11AA(2) of the SEBI Act and constitute a collective investment scheme, and AAL's fund mobilization without registration under the CIS Regulations is in contravention of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations.
Full text
Page 2 of 18 voluminous. SEBI vide letter dated November 12, 2014, advised AAL to submit the documents on or before November 28, 2014.
Page 3 of 18 iii From the Rule Book and other documents available, the following are observed: I. In the Rule Book, it is stated that “AAL engages in developing of “techno based, Agro industries” on behalf of the venturer for which the venturer shall enter into an agreement with the Company. Advisors are associated for booking orders for such activity”. It is also stated that “the company may also wish to buy back the stock if the venturer opts for an ‘Estimated Realizable Value’(ERV). All the charges related to the agreement would be borne by the venturer”.
Page 4 of 18 II(B) SYSTEMATIC PAYMENT SCHEME (SPS) Scheme SPS 2 for 78 months (6.6 Yrs) Sl. No. Consideration Cost INSTALMENTS ERV ADC Mly Qly Hly Yly 1. 7800 100 295 580 1150 10925 9000 2 15600 200 590 1160 2300 21850 18000 3. 23400 300 885 1740 3450 32775 27000 4. 31200 400 1180 2320 4600 43700 36000 5. 78000 1000 2950 5800 11500 109250 90000
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Source: SecMarx — sebi:WTM/SR/SEBI-SRO/IMD/142/07/2015. 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.