- (1.) The petitioners in this art.226 petition dated January 14, 2011 are questioning an order of the Securities and Exchange Board of India (hereinafter referred to as "the Board") dated January 3, 2011 (at p.80). The whole-time member of the Board passing the order under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "the Act") directed the first petitioner (hereinafter referred to as "the company") as follows: "15. In view of the same, I, in exercise of the powers conferred upon me under section 11B of the SEBI Act, 1992 and regulation 65 of CIS Regulations, hereby direct the company: a. not to collect any money from investors or to launch any scheme; b. not to dispose of any of the properties or delineate assets of the scheme; c. not to divert any fund raised from public at large kept in bank account and/or at the custody of the company."
(2.) By a letter dated January 8, 2010 (at p.51) the Board informed the second petitioner (the chairman of the company) as follows: "It has been brought to our notice that you are mobilizing deposits from the public. In this regard, please note that in terms of section 12(1B) of the SEBI Act, 1992 and the provisions of SEBI (Collective Investment Schemes) Regulations, 1999 (said Regulations), no entity can carry on or sponsor or launch a Collective Investment Scheme without obtaining a certificate of registration under the said Regulations. Also in terms of Chapter IX of the said Regulations, no existing Collective Investment Scheme shall launch any new scheme or raise money from investors even under the existing schemes, unless a certificate of registration is granted to it under the said Regulations."
(3.) By the letter dated January 8, 2010 the Board directed the company to supply the information and documents specified therein within fifteen days from the date of receipt thereof. On receipt of the letter the company wrote a letter darted January 22, 2010 (at p.52) stating and requesting the Board as follows: "We acknowledge receipt of your letter No.SEBI/ERO/RPS/10/190202 dated 8/01/2010, the contents of which have been duly noted. As directed by you, we are in the process of preparing all documents and in this connection we request you to kindly allow us a further period of 15 days to enable us to submit the same to your goodself.";