May
14, 2012
PR No. 055/2012
MPS Greenery Developers Ltd. prohibited from collecting money from investors for Collective
Investment Schemes
SEBI has passed an order on May 11, 2012, in the matter of MPS Greenery Developers Limited (MPS) whereby it
is:
i. directed not to collect any money from investors or to launch any scheme
ii. directed not to dispose of the properties of the scheme acquired in violation of the provisions of Securities
and Exchange Board of India (Collective Investment Schemes) Regulations, 1999
iii. prohibited from operating in the capital market and from accessing the capital market till such time MPS
Greenery Developers Limited deposits the amount of Rs.1169.39 crore in an Escrow account with a nationalized
bank.
MPS, having its registered office at "MPS Enclave", Commercial Building, Vill Dighisole P.O - Dahijuri, PS - Binpur,
Jhargram, West Midnapore, West Bengal -721504 was granted ‘Provisional Registration’ as a Collective
Investment Management Company on August 21, 2009 in accordance with the SEBI (Collective Investment
Schemes) Regulations, 1999 which expired on August 20, 2011. This provisional registration was granted subject to
certain conditions which included restrictions on launching any new scheme or on raising fresh money from the
investors; even under the existing schemes, unless a certificate of registration is granted to them by SEBI.
However, MPS not only failed to fulfill the conditions of Provisional Registration, it also raised money from the public
in violation of the conditions of provisional registration and it appears to be still mobilizing money from public. As per
information provided by ICRA Limited, the total outstanding balance of funds with the company stood at around
Rs.1169.39 crores as on January 25, 2011. Moreover, MPS had issued a newspaper advertorial which wrongly
stated that the company is allowed to carry out Collective Investment Scheme activities.
While the aforesaid directions take effect as on the date of the order, the company may make its submissions, if
any, within fifteen days from the date of receipt of the order.
Mumbai
May 14, 2012
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