September 14, 2004
PR No. 223/2004

Repayment to unitholders – CRB Mutual Fund

During 1994, the erstwhile CRB Mutual Fund had floated a scheme – Arihant Mangal, a close ended growth scheme with a duration of five years. During an inspection ordered by SEBI, many adverse findings were revealed. In view of the said adverse findings, in September 1995, SEBI directed CRB Mutual Fund not to launch any further scheme(s).
 
After getting reports of financial irregularities committed by CRB Capital Markets Ltd., a non banking financial company, SEBI advised the trustees of the CRB Mutual Fund to submit a report on the measures initiated by them to protect the interests of the unitholders of the Fund. As no response was received and some of the trustees had resigned, in the interests of unitholders, SEBI vide its Order dated May 21, 1997, interalia, directed the custodian of the CRB Mutual Fund not to dispose off the securities held by it till further orders. 
 
Meanwhile in the year 1997, in order to protect the interests of the unitholders and to ensure repayment to them, SEBI filed a Trust Petition before the Hon’ble High Court of Bombay. The Hon’ble High Court vide its Order dated January 25, 1999, approved repayment upto 300 units at NAV of Rs. 4.95 to each unit holder holding upto 10000 units. Due to certain litigations, the payment could not be made to unitholders then. However, keeping in view the interests of unitholders, SEBI made persistent follow-up for repayment. Now, with the Order of the Hon’ble High Court of Mumbai dated July 6, 2004, the Provisional Administrator has arranged for repayments. Accordingly, redemption warrants have been dispatched to 6178 unitholders of CRB Mutual Fund on September 1, 2004, for a total amount of Rs. 64.46 lacs. 
 
 
Mumbai
 
September 14, 2004