CO/427/CIS/12/2002
SECURITIES AND EXCHANGE BOARD OF INDIA
DIRECTIONS UNDER SECTION 11B OF THE SEBI ACT 1992 READ WITH REGULATIONS 65 & 73 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1992 ISSUED TO :
M/s GREEN COUNTRY BIO-TECH LTD., CHENNAI
M/s Green Country Bio-Tech Ltd., Chennai (hereinafter referred to as the Company) had applied for provisional registration under the provisions of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as "Regulations"). However, the said application was rejected by SEBI as they did not fulfill the requirements of Regulation 70(1)(b) of the "Regulations".
The rejection of application was communicated to the company vide SEBI’s letter dated 21.11.01 mentioning the grounds for rejection of the application. Vide said letter the company was advised that pursuant to the rejection of application, 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 intimation from SEBI dt. 21.11.01. 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 three and half months of the date of Information Memorandum.
As the company failed to comply with the aforesaid requirements, I, in exercise of powers conferred upon me under Section 11B of the SEBI Act read with Regulation 65 of the Regulations, vide my order dated 30.05.2002 had directed the company to refund the money collected under the scheme(s) with returns which is due to the investors as per the terms of offer within a period of one month from the date of the order. Vide said directions the company was also forewarned that in case of non compliance of these directions, 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 30.05.2002 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 scheme(s) (whose names are mentioned in Annexure) from operating, including buying, selling or otherwise dealing in the capital market and from accessing the capital market for a period of five years from the date of this order.
This is without prejudice to SEBI’s right to take any other action as it may deem fit.
Place : Mumbai (G.N. Bajpai)
Dated: December 24, 2002 Chairman
Securities and Exchange Board of India
ANNEXURE
Names of Promoters:
1) Sri K Krishnaiah
14, Topu Street
Triplicane
Chennai 600005
2) Sri B Sreenaadha Reddy
4C, 20/1, Barnaby Road
Kilpauk,
Chennai 600010
Names of directors.
1) Sri K Krishnaiah
14, Topu Street
Triplicane
Chennai 600005
2) Sri B Sreenaadha Reddy
4C, 20/1, Barnaby Road
Kilpauk,
Chennai 600010
3) Sri K Srihari
23, New S.B.I Colony
Dargamitta,
Nellore 524004
4) Sri K D N Prasad
23, New S.B.I.Colony
Pudalarkurt Road
Nellore 524004
5) Sri H Sankaranarayanan
15, II Cross Street
Karpagam Garden, Adyar
Chennai 600020
6) Sri P Sreenivasulu
Venkannapuram Post,
Kodavaraluru, Mandal
Nellore 524316
7) Sri Y. Krishna Reddy
No.13, Hindi Prachar Sabha Street
T.Nagar
Chennai 600017
Names of managers/persons in-charge of business of schemes
1. Sri K Suseelendra Rao.
2. Sri K Krishnaiah
14, Topu Street
Triplicane
Chennai 600005
3. Sri K Srihari
23, New S.B.I Colony
Dargamitta,
Nellore 524004
4. Sri K D N Prasad
23, New S.B.I.Colony
Pudalarkurt Road
Nellore 524004