Plantation cos for lowering net worth

MUMBAI, Jan 21: The Association of Agri-Plantation Companies of India (AAPCI) has urged SEBI to reduce the proposed Rs 10 crore net worth requirement for plantation companies to Rs 3 crore. The final draft regulations on collective investment schemes were presented to SEBI on December 31 by the committee headed by SA Dave.

"The proposed condition of maintaining a net worth of Rs 10 crore is too high to be achieved and is also not required for managing collective investment schemes. At the same time, the condition of maintaining Rs 10 crore net worth will discourage participation from small entrepreneurs," said an association memorandum presented to SEBI on Thursday. According to the association’s officials, not more than 10-12 companies will qualify if the threshold limit is Rs 10 crore.

The association officials met SEBI executive director Ashok Kacker on Thursday.