November 10, 2010
PR No. 248/2010
Order against M/s Nicer Green Forests Ltd.
Dr. K.M. Abraham, Whole Time Member, SEBI has passed an order dated November 9, 2010 in the matter of M/s Nicer Green Forests Ltd. directing the company to wind up its existing Collective Investment Scheme(s) (CIS) and to refund the money collected by it under the scheme(s) with returns which are due to the investors as per the terms of offer within a period of one month from the date of the order.
Nicer Green Forests Limited aimed at purchasing large tracts of land at a low cost and developing the same. The land/produce was then sold to the investors at a low price. The company gave investors an estimated realizable value against their investments at the end of the term and also gave them an option to either take the land or a fixed sum as per the terms of the scheme. The company retained the right of development and maintenance of the investor’s land. Further, it also reserved the right on the unit of land for the services incurred on its development as well as the right to distribute the land to any other investor. These activities of the company were found to be consistent with the features of a CIS, as defined under Section 11AA of the SEBI Act, 1992 read with Regulation 3 of the SEBI (CIS) Regulations, 1999.
SEBI also received complaints from the public stating that the company was not redressing their grievances with regard to their dues. It was, therefore, found that the company has been operating CIS without obtaining a Certificate of Registration from SEBI, in violation of Section 12(1B) of the SEBI Act, 1992 read with Regulations 73 and 74 of the SEBI (CIS) Regulations, 1999.
Mumbai
November 10, 2010
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