SUSHILA DEVI Vs. SECURITIES AND EXCHANGE BOARD OF INDIA
HIGH COURT OF DELHI
SECURITIES AND EXCHANGE BOARD OF INDIA
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PRADEEP NANDRAJOG, J. -
(1.) Securities and Exchange Board of India (SEBI) filed a complaint against the petitioners under Section 200 of the Code of Criminal Procedure, 1973 read with Section 24(1) and 27 of the Securities and Exchange Board of India, 1992. Inter alia, it was stated that Section 11 of the Act casts upon SEBI the duty to protect the interest of investors in securities and that SEBI was enjoined upon to promote the development of and to regulate the securities market through appropriate measures.
(2.) It was stated that the last decade had witnessed initiative by private entrepreneurs to undergo plantation activities on a commercial scale. It was noted that promoters would invest minimal amounts in such ventures. They would raise funds from ordinary investors in the absence of regulatory mechanisms. It was stated that the high returns promised under the schemes were questionable. It was stated that in the year 1997 certain guidelines were framed pertaining to plantation companies.
(3.) Listing out various regulations which require to be complied with in the year 1997 and alleging that the same were not complied with, complaint was filed alleging violation of Section 27 of the Act as also the regulations framed.;
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