Collective investment scheme under its jurisdiction: SEBI

Opposing Rose Valley Construction Company's petition seeking an injunction on its order, market regulator SEBI today told Calcutta High Court that it has the power to regulate the company's collective investment scheme, which is a type of collection from the public.

SEBI counsel Hirak Mitra submitted before the Court that its Collective Scheme Regulations of 1999 provided that if any company introduced collective investment scheme in any manner, it should be registered before the market regulator.

The SEBI counsel submitted that the listing of a company before a stock exchange was different from registering before the market regulator.

The matter would now be heard on Monday.

Rose Valley had yesterday stated that it was not listed in any stock exchange in the country and SEBI had no jurisdiction to interfere with its affairs.

It held that its affairs were regulated and administered by the Ministry of Corporate Affairs of the Government of India as provided under the Companies Act, 1956.

Rose Valley in a writ petition to the Calcutta High Court had sought an injunction against a SEBI order dated January 3 that prevented the company from collecting any money from investors, or launching any scheme, or disposing of any of its properties under it's collective investment scheme.

The petitioner prayed for an injunction on SEBI directing it to quash its January three order and not to interfere with its business.