Bizbits

No ban on plantation schemes

MUMBAI 8212; Sebi on Wednesday clarified that it had not imposed a ban on collective investment schemes and said that entities operating such schemes were required to pay investors their dues. In a public notice, the markets regulator said that it had only specified that fresh collective investment schemes could not be launched unless they were rated by credit-rating agenices, and that this does not prohibit companies from honouring their outstanding commitments. However, Sebi has issued a showcause notice to six plantation companies which have launched collective investment schemes, asking them why action should not be taken against them for failing to comply with the directions issued by it. These entities have failed to co-operate with Sebi-appointed auditors and not produced the relevant books of accounts and other documents required for the purpose of audit.