PRESS RELEASE - SEBI

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


For full copy of order against MPS GREENERY DEVELOPERS LTD., click here.