SC seeks reply from Sebi on Alchemist Infras plea

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Sep 21 2013, 09:59am hrs
The Supreme Court on Friday sought a reply from market regulator Sebi on petitions filed by Alchemist Infra Realty and others challenging the Securities Appellate Tribunal's order that asked the company to refund around R1,000 crore collected from 1.5 million investors through unauthorised 'collective investment schemes' (CIS).

A bench issued a notice to Sebi after Alchemist sought quashing of the tribunal's June order that upheld the Sebi's order, but gave 18 months to the firm to refund money in view of the long and tedious process of implementing the scheme of repayment to such a large number of investors. The market regulator had found the firm running unauthorised CIS businesses.

Sebi asked Alchemist to refund the money collected from investors within three months. Challenging SAT's June 23 order, Alchemist said Sebis refusal to consider a consent application in its case was mischievous and discriminatory as it had earlier considered applications by other parties in respect of cases related to collective investment schemes and/or violation of Section 12(1B) of the SEBI Act and/or Regulation 3 of the CIS Regulations.