Venus Greeneries v. SEBI
Case brief
What is this about?
Venus Greeneries Ltd appealed an SEBI order directing it to refund investor money for failing to register its collective investment schemes or wind them up. The Tribunal found the appellant violated regulations by not complying with mandatory requirements and dismissed the appeal, sustaining the order.
What did the court decide?
The appeal was dismissed and the impugned order of SEBI refusing registration and directing repayment was sustained.
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
APPEAL NO.8/2001
In the matter of:
Venus Greeneries Ltd Appellant Vs. Securities & Exchange Board of India Respondent APPEARANCE
Mr. Arun Kumar Advocate for Appellant Mr. S.V.Krishna Mohan Division Chief, SEBI Mr.Praveen Trivedi Asstt. Legal Adviser, SEBI for Respondent
(Appeal arising out of the order dated 7.12.2000 made by the Chairman, Securities & Exchange Board of India)
ORDER
The Appellant is a public limited company registered with the Registrar of Companies, Bihar. Paid up capital of the Appellant, as per its Balance Sheet as on 31.3.2000 is Rs.17.07 lakhs, comprising 1, 70, 700 equity shares of Rs.10 each. The Appellant is stated to be a "plantation company". It had launched three collective investment schemes. In terms of the Securities and Exchange Board of India Act, 1992 (the Act) and the Securities and Exchange Board of India (Collective Investment Schemes) Regulations 1999 (the 1999 Regulations), the Respondent is mandated to regulate the working of collective investment schemes. According to the Respondent’s version the Appellant had failed to comply with the statutory requirements and on that premises it issued the impugned order under section 11B of the Act read with regulations 65 and 73 of the 1999 Regulations. The impugned order appears to be a standard order issued by the Respondent to all those existing collective investment schemes, which according to the Respondent had failed to comply with the requirements of the Regulations. The order is not specifically addressed to the Appellant. But the forwarding letter is addressed to the Appellant. Full text of the short order which is under challenge is as under: -
Issues for consideration
3 issues framed by the court
Whether the appellant, an existing collective investment scheme, failed to comply with the mandatory provisions regarding registration or winding up under Chapter IX of the SEBI (Collective Investment
Whether the SEBI order directing the refund of investor money and initiating prosecution was legal under Regulation 65 of the 1999 Regulations.
Whether the impugned order violated the principles of natural justice due to lack of opportunity of being heard.
Parties & counsel
- appellant
Venus Greeneries Ltd
- respondent
Securities & Exchange Board of India
Coram
ACHUTHAN
Case details
As recorded by the court registry
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