2017-TIOLCORP-14-SAT
Pancard Clubs Ltd Vs SEBI
Whether the holiday scheme/plan floated by a company falls under the category of CIS if it satisfies all the four conditions laid down in Section 11AA of the SEBI Act - YES : SAT
Whether the first criteria laid down u/s 11AA(2) for determining existence of a CIS would be satisfied if under a holiday scheme, money is accumulated by way of contributions to the holiday scheme and such collection is well above the limit of INR 100 cr set laid down under the proviso of clause 1 of subsection 2 of Section 11AA of the SEBI Act - YES: SAT
Whether it can be said that investors in the holiday scheme have invested their money with the intention to draw profits therefrom if 97% of the investors surrendered unutilized 'room nights' credited in their in exchange of an amount which is higher in value that their initial investment - YES: SAT
Whether it can be said that investments in the scheme are managed by the company on behalf of the investors if money collected from investors was used by the company to maintain accommodation and holiday facilities in various locations - YES: SAT
Whether in terms of Section 12(1B) an 'existing CIS' i.e. which came into existence prior to 1995 can continue to operate without registration till the time regulations in that behalf are notified - YES: SAT
- Appeal dismissed: SAT
