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2015 (8) TMI 993 - AT - Companies LawRegistration for operating CIS scheme – Winding up of scheme and refund on non-compliance – Whether SEBI was justified in holding that schemes floated by Applicant constitute Collective Investment Schemes under SEBI Act, 1992 and that Applicant and its promoters and directors, were liable to wind up said schemes – Held that:- By inserting Section 12(1B) to SEBI Act legislature has made it mandatory for any person to obtain certificate of registration for operating CIS – Thus, operating CIS without obtaining certificate of registration from SEBI was illegal after CIS Regulations came into force and that person shall be directed to either wind up CIS or comply with CIS Regulations – Admittedly, some of schemes floated by applicant were existing, when regulation was enacted – SEBI vide two communication informed applicant that said schemes were CIS and to get registration in terms of regulations 5 or wind up schemes – On non-compliance, direction to wind up existing CIS and refund money collected from investors cannot be faulted – Thus, Appellants directed to comply with directions contained in impugned order of SEBI – Application dismissed – Decided against Applicant.
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