Vgp Argo farms rejected by Sebi

CO/397/CIS/12/2002 DIRECTIONS UNDER SECTION 11 B OF THE SEBI ACT 1992 READ WITH REGULATIONS 65 & 73 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 ISSUED TO   M/S VGP AGRO FARMS LTD, CHENNAI M/s VGP Agro Farms Ltd., Chennai (hereinafter referred to as the company), had applied for registration under the provisions of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred as the Regulations). However, the said application was rejected as withdrawn. This rejection of the application was communicated to the company by SEBI vide its letter dated 12.02.2002 wherein the company was advised that as the application of the company has been rejected it was required to wind up its existing scheme(s) and make repayment to the investors in terms of Regulation 73 of the Regulations. Accordingly, the company was required to send an Information Memorandum to the investors, who had subscribed to its scheme(s), within two months from the date of receipt of the intimation from SEBI. Further, on completion of the winding up and repayment to the investors in terms of Regulation 73, the company was required to file a ‘Winding up and Repayment Report’ in the format prescribed by SEBI so as to reach SEBI within 3½ months of the date of the Information Memorandum. As the company failed to comply with the aforesaid provisions, I, in exercise of powers conferred upon me under Section 11B of the SEBI Act read with the Regulation 65 of the Regulations, vide my order dated 31.08.2002 directed the company to refund the money collected under their scheme(s) with return which is due to the investors in terms of the offer within a period of one month from the date of the order. Vide said directions the company was forewarned that in case of non compliance various actions mentioned in the said order would follow. The company however, has failed to comply with the aforesaid directions and has not repaid to the investors in terms of the said directions. Now, therefore, in terms of the directions dated 31.08.2002 and in exercise of powers conferred upon me under Section 11B of SEBI Act, 1992, read with Regulation 65 of the Regulations, I hereby debar the company / its promoters / its directors / its managers / persons in charge of the business of its schemes (whose names are mentioned in the Annexure) from operating in the capital market and from accessing the capital market for a period of 5 years from the date of receipt of this order. This is without prejudice to SEBI’s right to take any other action as it may deem fit.     Place: Mumbai9; Date: 3rd December, 02