The Securities and Exchange Board of India (Sebi) on Wednesday invited refund applications from investors of PACL Ltd, which has collected over Rs 49,100 crore from small investors through various collective investment schemes (CIS) over 15 years. This is the first payout by Sebi in this case.
Sebi said that the Supreme Court appointed committee under the chairmanship of retired justice RM Lodha has decided to refund the investors from the sale proceeds of some of the assets of PACL. The regulator has invited refund applications from investors who have put in up to Rs 2,500 in the investment schemes of PACL.
“…the committee has decided to receive claims from such investors whose total outstanding amount (Principal)with PACL is up to Rs 2,500. It is clarified that refund may not necessarily be Rs 2,500 per claimant investor, and would be effected on a pro-rata basis after considering the number of claims received as well as the funds available with the committee,” said Sebi. The regulator has directed eligible investors to send their refund applications via text messages or by uploading the details on its website by February 28. Sebi has also prescribed a format for refund applications which is available on its website. According to sources, Sebi has so far been able to recover over Rs 200 crore in the case.
About three years ago, the regulator had directed PACL to refund Rs 49,100 crore to investors. PACL ran the biggest illegal money pooling scheme in the history of the country.