EquiCorp Associates

For the last few years, Securities and Exchange Board of India (“ SEBI ”), the Indian securities regulator, has intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. It shall be noted that the Collective Investment Scheme (“ CIS ”) activities hereunder covers various relevant legislations, regulations and rules, for the time being in force in India and the legal entity has to obtain approval/register itself with SEBI as a Collective Investment Management Committee (“ CIMC ”) to be able to launch a CIS. In last few years, SEBI has intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis wherein various entities garner funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture.  Securities Appellate Tribunal (hereinafter the “ SAT ”) recently passed an order upholding SEBI’s findings against Alchemist Infra Realit...