Sebi Asks Shivaji Estate To File Winding-up Report

Mumbai, October 17: | Updated: Oct 18 2002, 05:30am hrs
The Securities and Exchange Board of India (Sebi) has asked the Nagpur-based plantation company, Shivaji Estate Livestock and Farms Pvt Ltd, to file a winding up and repayment report within 15 days and refund the money to investors who have not given positive consent to continue with the companys collective investment schemes (CIS) by November 10.

Sebi has also given an indirect warning to the company that if it fails to comply with the Sebi order of October 11, it will initiate prosecution under Section 24 of Sebi Act.

If the company fails to comply with Sebis regulations, it would be forced to debar the company and its officials from accessing the capital market for a period of five years, Sebi said.

Sebi has also warned the company that in the event of company failing to adhere to its directive, the reference would be made to the state government/local police to register civil/criminal cases against the company for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds.

The company may also face action from the Department of Company Affairs (DCA) to intiate the process of winding up, it said.

Sebi rejected the application for granting registration to under the provisions of the Sebi (Collective Investment Schemes) Regulations. After its application was rejected, Sebi asked the company to wind up its schemes to repay investors and report compliance in the format specified by it. The company submitted its report and it was observed that it has not repaid to all investors and has violated provisions of the Sebi Act.