EquiCorp Associates

In its biggest-ever crackdown on a large-scale money pooling scheme estimated at nearly Rs. 50,000 crore ( twice the amount to be recover from SAHARA group ), regulator SEBI has ordered  Pearls Agrotech Corporation Limited (“ PACL ”) to refund investors within three months and wind up operations . SEBI had found PACL violating Collective Investment Scheme Regulations by mobilizing the money without being registered with the regulator, SEBI. Besides, closure of PACL operations, SEBI  is initiating further proceedings against PACL and its nine promoters and directors for fraudulent and unfair trade practices, as also for violation of SEBI's CIS Regulations, among others, as per a direction from the Supreme Court. At present, it is being estimated that PACL has more than   58.5 million customers, more than twice the 22 million demat accounts in the entire country and has paid commission of Rs 7,893.8 crore up to March 2012  to more than its 8 lakh agents who works as netwo

On August 10, 2014, real estate sector received a KICK to boost up the cash strapped industry a new route to tap capital with the approval of setting up of Real Estate Investment Trusts(REITs) by SEBI, market regulator. What is REIT? RE- Real Estate To construct homes, offices, townships I- Investment All investors are welcome T-Trust Operated by professional managers (similar to mutual fund managers) REIT is an investment pool, which finds alternative means of financing real estate through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. This pool of real estate generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis. REITs can be viewed as mutual funds that invest in real estate properties and/or mortgages instead of securities such as bonds and shares. REITs are financi

“Nidhi is a company formed with the exclusive object of cultivating the habit of thrift, savings and functioning for the mutual benefit of members by receiving deposits only from individuals enrolled as members and by lending only to individuals, also enrolled as members” -        Section 406, Companies Act, 2013 & Companies Rules 2014 Nidhi Company are registered or formed only for the benefit for its members only, an outsider i.e. who is not the member of the Nidhi Company is not allowed to deposit any money or doing any kind of business with the concerned Nidhi Company. In this article we will analyze the impact of Nidhi Companies Rules 2014 on the registration of Nidhi Company Incorporation of Nidhi Company i)       A Nidhi Company to be incorporated under the Companies Act, 2013 (“ Act ”) shall be a public company and with a minimum paid up equity share capital of five lakh rupees; ii)      On and after the commencement of Companies Act, 2013, no Nidhi Company sh