January 20, 2000
PR No. 14/2000
STATUS OF COLLECTIVE INVESTMENT SCHEMES
It may recalled that pursuant to Govt. of India press release dated November 18, 1997 directing that agro bonds, plantation bonds etc. would be treated as Collective Investment Schemes coming under the purview of SEBI, SEBI vide its public notice dated December 18, 1997 had directed existing schemes to file the details of their schemes. Consequently, information was received from 642 entities who have reportedly raised about Rs. 2681 crores.
The SEBI (Collective Investment Schemes)Regulations, 1999 were notified on October 15, 1999. As per the provisions of the Regulations any person who, immediately prior to the commencement of these Regulations, was operating a Collective Investment Scheme shall make an application to SEBI for the grant of certificate of registration within a period of two months from the date of notification, i.e. make an application for registration on or before December 14, 1999. Further, as per the provisions of the Regulations an existing collective investment scheme which has failed to make an application for registration to SEBI or which is not desirous of obtaining provisional registration from SEBI shall wind up the existing schemes and repay the investors.
Pursuant to the above provisions of the Regulations, the status of applications received/intimation for repayment to be made received/additional time and clarification sought by existing collective investment entities as on January 17, 2000 is as under:
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Applications for grant of registration received from 26 entities which had earlier filed information with SEBI and had reportedly mobilised approximately Rs. 262
crores.
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Intimation for repayment to be made received from 39 entities which had earlier filed information with SEBI and had reportedly mobilised approximately Rs. 332 crores. (This includes information about 2 entities viz. M/s Sterling Tree Magnum (I) Ltd. and M/s Southern Green Fields Ltd., which have reportedly mobilised about Rs. 181 crores and Rs. 2.35 crores, respectively and which have filed a scheme of arrangement/ winding up before the Hon’ble High Courts.)
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Additional time sought by 25 entities which had earlier filed information with SEBI and had reportedly mobilised approximately Rs. 188
crores.
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21 entities which had earlier filed information with SEBI and had reportedly raised approximately Rs. 13 crores have sought various clarifications.
In addition, there are various entities against whom the Hon’ble High Courts have passed various orders and their status is as under:
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M/s Golden Forests (I) Ltd. which had earlier filed information with SEBI and had reportedly raised approximately Rs. 1000 crores has offered a scheme to repay the investors which has been approved by the Hon’ble High Court, Mumbai subject to conditions.
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In the case of M/s Kuber Planters Ltd. which had earlier filed information with SEBI and had reportedly raised approximately Rs. 86 crores, the Crime Branch, Delhi Police has registered a case and has arrested few of their directors.
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In the case of M/s Libra Plantations Ltd. which had earlier filed information with SEBI and had reportedly raised approximately Rs. 16 crores has been directed by the Hon’ble High Court, Mumbai not to dispose of any of its immovable assets and has appointed an Official Liquidator to take over the assets of the Company.
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In the case of M/s Okara Agro Industries Ltd. which had earlier filed information with SEBI and had reportedly mobilised approximately Rs.73 crores has filed a scheme of repayment before the Hon’ble High Court, Delhi.
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In the case of M/s Arrow Global Agro Tech Ltd. the Hon’ble High Court, Mumbai has appointed Justice (Retd.) H. Suresh as Administrator of the Company/its subsidiaries/group companies/sister companies etc.
The Hon’ble High Court, Delhi in writ petition no. 3352/98 has, inter-alia, directed collective investment entities to comply with the circular of SEBI dated February 24, 1998. The entities have also been restrained from selling, disposing of and/ or alienating their immovable properties or parting with the possession of the same. The Hon’ble High Court has further stated that its order will not come in the way of entities intending to refund the money to their investors.
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