Meet With Plantation Scheme Players Put Off

The Securities and Exchange Board of India (Sebi) has put off its proposed meeting with leading plantation scheme players following confusion about the regulatory purview of such schemes.

The capital markets watchdog has already prepared draft regulations for collective investment schemes. However, the Union finance ministry is reported to be drafting legislation exclusively for plantation schemes.

Said a Sebi source: We have already prepared a draft of regulations that would cover such schemes. We intended to call a meeting of leading players to prepare ourselves in case Sebi is asked to regulate such schemes. However, unless the finance ministry gives any directive, nothing can be done for the moment.

 

The source added that there is confusion about whether teak plantations or other tree plantations can be considered a security. For Sebi to regulate such schemes, they have to be in the form of a security. We have not been able to decide on the matter as yet. There is a legal hurdle.

The Sebi board meeting that took place on June 4 in Delhi discussed the possibility of regulating plantation schemes.