SEBI Vs. GREEN EARTH FARMS AND ESTATE PRIVATE LIMITED
SECURITIES APPELLATE TRIBUNAL
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(1.) M/s. Green Earth Farms and Estate Private Limited (hereinafter referred to as "Company") having its office at Flat No. 4, 1st Floor, Swati Complex, 10, Bazullah Road, T. Nagar, Chennai, did not file information with SEBI pursuant to public notice dated 18.12.1997 whereby SEBI had directed all the existing Collective Investment Schemes to file certain information about their schemes with it by 15.01.1998. Pursuant to the SEBI's letter dated 21.04.1998 asking the company to show cause as to why appropriate action should not be initiated against it for non furnishing of information, the company while furnishing certain information contended that it is not operating Collective Investment Schemes.
(2.) Consequent to the notification of SEBI (Collective Investment Schemes) Regulations, 1999 (herein after referred to as the "said Regulations") dated October 15, 1999, every person who, immediately prior to the commencement of the said Regulations was operating a Collective Investment Scheme(s), was required to make an application to SEBI for the grant of registration within a period of two months from the date of notification, under the provisions of the said Regulations.
In terms of Regulation 73 of the said Regulations, an existing Collective Investment Scheme which has failed to make an application for registration with SEBI was required to wind up its schemes and repay its investors in the manner specified therein. Further, as per Regulation 74, an existing Collective Investment Scheme which is not desirous of obtaining provisional registration from SEBI is required to formulate a scheme of repayment and make repayment to the existing investors in the manner specified in Regulation 73.
(3.) SEBI by way of a public notice dated December 10, 1999 and also vide letter dated December 29, 1999 had given intimation to the Company that in case it is not desirous of obtaining registration from SEBI, it was obliged to send an Information Memorandum (IM) to all the investors detailing the state of affairs of the scheme(s), the amount repayable to each investor and the manner in which such amount is determined. Accordingly, the Company was required to send the Information Memorandum to the investors latest by February 28, 2000.;
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