LIFE CARE INDIA LTD Vs. STATE
SECURITIES APPELLATE TRIBUNAL
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(1.) SECURITIES and Exchange Board of India (hereinafter referred to as SEBI) vide its detailed order dated 29th May, 2003 under section 11B of the SEBI Act, 1992 read with Regulations 65 of SEBI (Collective Investment Schemes) Regulations, 1999 found that Life Care (India) Ltd., [hereinafter referred to as LCL] failed to comply with the requirements of SEBI Act, 1992 and SEBI (Collective Investment Schemes) Regulations, 1999 and as a last opportunity LCL was directed to refund the money collected under its Collective Investment Schemes with returns which is due to the investors as per the terms of the offer within a period of one month from the date of the said order. It was also mentioned in the aforesaid order of SEBI that in case of failure of the company to comply with the Order of SEBI, the following actions will ensue:-
1. Initiation of prosecution proceedings under Section 24 of the SEBI Act, 1992 against the company / its promoters / directors/ managers / persons in charge of the business of its scheme (s).
(2.) Debarring the company / its promoters / directors / managers / persons in charge of the business of its scheme(s) from operating in the capital market and accessing the capital market for a period of 5 years.
Writing to the state government / local police to register civil / criminal cases against the company and its promoters / directors for apparent offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.
(3.) WRITING to the Department of Company Affairs to initiate the process of winding up of the company.
2. The aforesaid order of SEBI was forwarded to the company at its registered office address, vide letter dated June 9, 2003 and the copies were sent to the company and all its directors separately. SEBI also issued a Press Release on June 6, 2003, with respect to the above order issued by SEBI. It is observed that the company has failed to comply with the directions contained in the order dated May 29, 2003.
3. Therefore, in exercise of the powers conferred upon me under Section 11B read with Section 4(3) of the SEBI Act, 1992 and Regulation 65 of SEBI (Collective Investment Schemes) Regulations, 1999, I, hereby debar the company / its promoters / its directors / its mangers / persons in charge of business of its schemes (whose names and addresses are mentioned in the Annexure herewith) from operating in the capital market and from accessing the capital market for a period of 5 years from the date of this order.
4. In case however, any aggrieved person, whose name is mentioned in the enclosed Annexure, was not aware of the previous order and the warning issued vide said order and was not responsible for the conduct of the business of the company, he may apply in writing, within 15 days, from the date of the order, with all the supporting documents, to SEBI.;
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