SEBI Vs. KALPTARU AGRO INDIA LTD
SECURITIES APPELLATE TRIBUNAL
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(1.) M/s Kalptaru Agro India Ltd. (hereinafter referred to as the company) had filed information / details with SEBI regarding its Collective Investment Schemes (CIS) pursuant to the public notice dated 18.12.97 issued by SEBI.
(2.) Subsequent to the notification of SEBI (Collective Investment Schemes) - Regulations, 1999 (hereinafter referred to as the Regulations) on October 15, 1999, the company applied for registration under the provisions of the Regulations. The application and other details available on record were examined by SEBI. Various opportunities of being heard were also granted to the company. In the course of the said hearings, it emerged that the company had continued to mobilize funds in contravention of SEBI directions dated 24.2.98 & the Order of the Hon'ble High Court of Delhi dated 7.10.98 / 13.10.98 passed in the CWP 3352/98. The said action of the company resulted in the violation of Regulation 69 of the Regulations. Hence, the company was advised to immediately repay the amounts of money mobilized in contravention of the above-mentioned directions and Orders. The company filed an estimated repayment schedule spanning seven years till 2008-2009 with SEBI with respect to these funds. The same was not found to be acceptable by SEBI. Further, the company did not fulfil certain requirements of the Regulations for grant of registration. Therefore, its application was rejected by SEBI on 29.6.2002.
While intimating the grounds of rejection of its application, SEBI vide its letter dated 5.7.2002, advised the company that pursuant to the rejection of its application, the company, as an existing Collective Investment Scheme, was required to wind up its existing scheme(s) and make repayment to the investors in terms of Regulation 73 of the Regulations.
(3.) ACCORDINGLY, the company was required to send an information memorandum to the investors, who had subscribed to its scheme(s), within two months from the date of receipt of the intimation from SEBI. Further, on completion of the winding up and repayment to the investors in terms of Regulation 73, the company was required to file a "Winding Up & Repayment Report" in the format prescribed by SEBI so as to reach SEBI within 3 & 1/2 months of the date of the information memorandum.;
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