{"id":197375,"date":"2018-06-22T19:59:06","date_gmt":"2018-06-22T14:29:06","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=197375"},"modified":"2018-08-18T17:37:44","modified_gmt":"2018-08-18T12:07:44","slug":"winding-up-of-collective-investment-scheme-ordered-for-contravention-of-section-121b-sebi-act","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/22\/winding-up-of-collective-investment-scheme-ordered-for-contravention-of-section-121b-sebi-act\/","title":{"rendered":"Winding up of \u2018Collective Investment Scheme\u2019 ordered for contravention of Section 12(1b) SEBI Act"},"content":{"rendered":"

Securities and Exchange Board of India (SEBI): <\/strong>The whole time member of SEBI,\u00a0 G.Mahalingam in accordance to the interim order given earlier issued directions under Section 19 of the Securities and Exchange Board of India Act, 1992 and Sections 11(1), 11(B) and 11(4) thereof and regulation 65 of the SEBI (Collective Investment Schemes) Regulations, 1999\u00a0 to NICL India Ltd. for engaging in Collective Investment Schemes without \u2018certificate of\u00a0 registration\u2019 from SEBI.<\/p>\n

NICL\u00a0 India Ltd. was involved in illegal mobilization of funds from the public through \u2018Collective Investment Schemes\u2019, without obtaining the certificate of registration resulting in the contravention of Section 12(1B) of the SEBI Act, 1992 with Section 11 AA and Regulation 3 of CIS Regulations. It has also been stated that NICL was alleged of contravention of Regulation 4(2)(t) of \u2018Prohibition of Fraudulent & Unfair Trade Practice Relating to Securities Market Regulations, 2003.<\/p>\n

The interim order that had been said to be passed carried certain directions towards the NICL directors and further in reference to that,\u00a0 they were asked to file reply, if any. \u00a0NICL through the further correspondence of letters kept asking for the extension of time to refund the investor\u2019s money.<\/p>\n

SEBI received complaints subsequently in which one was from RBI as well, in regard to the \u2018mobilization of public fund\u2019, after NICL had claimed to adhered all the stated directives in the interim order.<\/p>\n

Therefore, it was noted by the board that, after providing opportunity of personal hearing and absenteeism in that, SEBI had to conclude by stating that \u2018Noticees\u2019 that were engaged in the Collective investment scheme had failed to address prima facie<\/em> conclusions in the interim order, for which the directors of NICL would be liable which further lead SEBI for the issuance of certain directions that involved the winding up of the NICL\u2019s Collective Investment Scheme and certain other directives for refund of the invested funds. [NICL India Ltd., In Re,2018 SCC OnLine SEBI 128<\/b><\/a>, order decided on 21-06-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"

Securities and Exchange Board of India (SEBI): The whole time member of SEBI,\u00a0 G.Mahalingam in accordance to the interim order given earlier <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[29733,30635,30634,2563,7721],"class_list":["post-197375","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-certificate-of-registration","tag-fraudulent","tag-public-fund","tag-SEBI","tag-winding-up"],"yoast_head":"\nWinding up of \u2018Collective Investment Scheme\u2019 ordered for contravention of Section 12(1b) SEBI Act | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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