TaxTMI 
TaxTMI 
2015 (9) TMI 917
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....itioner was inducted as a director of the company on 1.1.1998 and remained on the Board of Directors till 25.7.1998, when for personal reasons she resigned from the directorship of the company. 5. Section 12(1B) of the Securities and Exchange Board of India Act (hereinafter referred to as 'the Act') came to be inserted in the Act with effect from 25.1.1995. It provided that no person shall sponsor or cause to be sponsored or carry on or caused to be carried on any venture capital funds or Collective Investment Schemes (CIS) including mutual funds, unless he obtains a certificate of registration from the Securities and Exchange Board of India (for short 'SEBI') in accordance with the regulations. The proviso to the aforesaid sub Section permits that any person sponsoring or causing to be sponsored, carrying or causing to be carried on any such fund or scheme operating in the securities market immediately before 25.1.1995, for which no certificate of registration was required prior to the said date, may continue to operate till such time regulations were made under clause (d) of sub-section (2) of section 30. 6. The Government of India in order to regulate entities which issued ins....
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....ollective investment scheme] shall have to give a positive consent within one month from the date of the information memorandum to continue with the[collective investmentscheme]. (7) The investors who give positive consent under sub-regulation (6), shall continue with the[collective investment scheme] at their risk and responsibility :Provided that if the positive consent to continue with the[collective investment scheme], is received from only twenty-five per cent or less of the total number of existing investors, the [collective investment scheme] shall be wound up. (8) The payment to the investors, shall be made within three months of the date of the information memorandum. (9) On completion of the winding up, the existing collective investment scheme shall file with the Board such reports, as may be specified by the Board. 11. The company was intimated about its obligations under Regulation 73(2) vide letter dated 15.12.1999 and 29.12.1999 as also by way of public notice dated 10.12.1999. 12. On 22.2.2000, SEBI, by way of public notice informed the company that all companies carrying out Collective Investment Schemes which had not made any application for grant of registratio....
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....ll wind up the existing[collective investment scheme]. (2) The existing Collective Investment Scheme to be wound up under sub-regulation (1) shall send an information memorandum to the investors who have subscribed to the [collective investment scheme]s, within two months from the date of receipt of intimation from the Board, detailing the state of affairs of the [collective investment scheme], the amount repayable to each investor and the manner in which such amount is determined. (3) The information memorandum referred to in sub-regulation (2) shall be dated and signed by all the directors of the [collective investment scheme]. (4) The Board may specify such other disclosures to be made in the information memorandum, as it deems fit. (5) The information memorandum shall be sent to the investors within one week from the date of the information memorandum. (6) The information memorandum shall explicitly state that investors desirous of continuing with the [collective investment scheme] shall have to give a positive consent within one month from the date of the information memorandum to continue with the[collective investmentscheme]. (7) The investors who give positive consent unde....
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....es on 22.9.2004 i.e. after the complaint was lodged against the company. 22. It was further submitted on behalf of the petitioner that she was not a director of the company when the notification of the year 1999 came into existence. The other ground taken by the petitioner is that in a complaint case filed by the Registrar of the Companies against M/s.Assured Agro Park Ltd for non filing of the annual return and the balance sheet of the year 1997-98, one of the directors, who has been arraigned as an accused in the present case, was acquitted on the ground that he had resigned from the company in the year 1998, i.e. prior to the date when the balance sheet and the annual return of the company had to be filed. 23. The learned counsel appearing for SEBI countered such an argument and referred to Section 12(1B) of the Act, one of the sections which was violated by the accused persons including the petitioner. The aforesaid section namely Section 12(1B) which prohibit sponsoring or carrying on of any CIS without obtaining certificate of registration from the board, was notified on 25.1.1995 i.e. even prior to the petitioner being inducted in the board of the company as a Director or ....
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....bendra Nath Padhi, (2005) 1 SCC 568, the Supreme Court while considering whether the Trial Court, at the time of framing of charges can consider materials filed by the accused. The question was answered in the negative. Paras 18 and 23 of the said judgment reads as under:- "18. We are unable to accept the aforesaid contention. The reliance on Articles 14 and 21 is misplaced...Further, at the stage of framing of charge roving and fishing inquiry is impermissible. If the contention of the accused is accepted, there would be a mini trial at the stage of framing of charge. That would defeat the object of the Code. It is well-settled that at the stage of framing of charge the defence of the accused cannot be put forth. The acceptance of the contention of the learned Counsel for the accused would mean permitting the accused to adduce his defence at the stage of framing of charge and for examination thereof at that stage which is against the criminal jurisprudence. By way of illustration, it may be noted that the plea of alibi taken by the accused may have to be examined at the stage of framing of charge if the contention of the accused is accepted despite the well settled proposition th....