2016 (7) TMI 1678 - SCH - SEBI

Invalid CIS scheme - non seeking registration with SEBI - violation of CIS Regulations - collection of subscription amount after the ex-parte interim order - refund to investors - HC upholding the decision of SEBI that the Appellants have floated and operated CIS without registering with SEBI and hence in violation of CIS Regulations, since the schemes are closed by the Appellants voluntarily and substantial amount is refunded to the investors, we grant extension of two years time from the date of this order to the Appellants to enable them to pay the balance amount refundable to the investors. HELD THAT - No substance in these appeals, therefore, the civil appeals are dismissed. Pending application, if any, stands disposed of. As clarified that the respondent shall not collect further amount from the investors until it is registered as CIS and shall also give details to the SEBI with regard to the amount disbursed by it, at the end of every quarter. The first such statement shall be given in the first week of October about the payments made up to 30th September, 2016.

Summary

The Supreme Court of India dismissed the civil appeals. The respondent must not collect more money from investors until registered as CIS, and must provide payment details to SEBI quarterly.