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2010 (10) TMI 88 - HIGH COURT OF DELHIWhether violation of regulations 73 and 74 of the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999 punishable under section 24 of the Securities and Exchange Board of India Act, 1992 is a continuing offence or not? Held that:- In this case, under section 12(1B) no person could have carried out a collective investment scheme unless he obtained a certificate of registration from the Board in accordance with the Regulations framed under the Act. Regulations were framed in the year 1999 and notified to all concerned including the petitioner. As per regulation 68 any person operating a collective investment scheme at the commencement of the Regulations was under legal obligation to get the existing collective investment scheme registered with the Board and obtain a certificate of registration. If it failed to do so, it was a legal mandate to such person to wind up the existing collective investment scheme by following the procedure as prescribed under regulation 73. Regulation 74 further provided that existing collective scheme which was not desirous of obtaining provisional registration from the Board was legally bound to formulate a scheme of repayment and make such repayment to the existing investors in the manner specified in regulation 73. Nothing has been placed on record to suggest that petitioners had taken any step to get registered with the Board or wound up the collective investment scheme and made the payment to the investors. The amount still continues to be retained by the petitioners, thus, infringement of regulations 73 and 74 is continuing in nature and limitation envisaged under section 468 of Cr. P.C. would not be attracted. Appeal dismissed.
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