Sebi encourages plantations cos to pay-back

Several plantation companies have approached the regulator, stating their desire to repay those investors who wish to exit from CIS, she said adding that Sebi would also bring this to the notice of the courts where cases are pending against these companies.

Welcoming this move, a spokesman of the Investor Grievances Forum IGF said 8220;Investors have lost confidence in court procedures8221; and called for action against these companies for recovery of investments by disposal of assets.The Supreme Court has, however, prohibited companies with collective investmentschemes CIS from disposing off their assets except for the purpose of repayment.

The Securities and Exchange Board of India appointed committee on CIS chaired by former Unit Trust of India chairman Dr S A Dave had suggested a period of three years for existing schemes to restructure their operations and achieve capital adequacy norms or those not desirous of coming under regulatory purview, may wind-up and refund investor8217;s funds.