MORGAN STANLEY MUTUAL FUND DRARVINDGUPTA Vs. KARTICK DAS:SECURITIES AND EXCHANGE BOARD OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) The appellant is a domestic mutual fund registered with Securities and Exchange Board of India (hereinafter referred to as SEBI) under Registration No. MF/005/93/1 dated 5-11-93. The appellant is managed by a Board of Trustees. Pursuant to the SEBI (Mutual Fund) Regulations, the investment management company of the appellant, Morgan Stanley Asset Management India Private Limited was registered with SEBI on 5-11-93. Under such registration Morgan Stanley Asset Management India Private Limited is constituted as the asset management company of the appellant. Morgan Stanley Asset Management India Private Limited is a subsidiary of Morgan Stanley Group Inc. which holds 75% of equity, the balance being held by Indian shareholders such as Housing Development Finance Corporation (HDFC, Stock Holding Corporation of India etc. Morgan Stanley Asset Management India Private Limited was granted certificate of incorporation on 18th October, 1993 by the Registrar of Companies, Bombay. Its Memorandum and Article of Association have also been approved by the SEBI as per the provisions of the said Regulations.

(3.) The draft scheme of the appellant was approved by the Board of Trustees by Circular Resolution dated 8-11-93. This was forwarded to SEBI for its approval on 10-11-93. The scheme was duly scrutinised and examined by the SEBI and SEBI gave its approval and certain amendments were suggested. Upon receipt of such approval for the scheme, the appellant and the Investment Manager took necessary steps to begin marketing the scheme by issue of advertisements. All advertisements and publicity material were approved by SEBI in writing before publication as required by the Regulations. Pursuant to such approval the appellant commenced advertising the public issue.