Mumbai: The Securities and Exchange Board of India SEBI has barred West Bengal-based Rose Valley Real Estates & Construction from raising money from the public on the charge that it did not seek the market watchdog’s permission for running a scheme, reports PTI.
While Rose Valley claimed that it was mobilising funds for real estate business, SEBI came to the conclusion that the company was in fact running a collective investment scheme (CIS) and did not seek market regulator’s permission, mandatory for these products.
As such, SEBI directed Rose Valley, “not to collect any money from investors or to launch any scheme, not to dispose of any of the properties or delineate assets of the schemes and not to divert any fund raised from public at largest kept in bank account and or at the custody of the company.”
The company has been raising funds from the public in certain areas of West Bengal in the name of sale of plots of land under its Ashirbad scheme. However, all investors in the scheme get a piece of land at a fixed price.
It is this feature of the scheme, on the basis of which SEBI said the product cannot be called a real estate business.
A typical real estate business would price its land banks, depending on location, terrain, current and future potential of use of the land, SEBI said.
“It is a prevalent and innate feature of real estate that even within the same location, there may be differential pricing taking into account the floor rise, etc. However, the schemes of the company claim to be a pure real estate developer on the premise that all investors in this scheme get a piece of land at a fixed price,” the watchdog said.
Pointing out that land or land banks at different places would be valued differently in real estate business, SEBI said, however, in the current case no demarcation was made in terms of pricing of land.
“The land is proposed to be sold according to the plans offered under the Ashirbad scheme and not on the basis of pricing of land based on its locations or otherwise,” SEBI said.
As such, SEBI said it appears that land units are fungible and irrespective of location, the price remains the same.
CIS is a scheme in which payments made by investors are pooled and utilised for the purpose of the scheme. Under the scheme, contributions are made with a view to receive profits, income, produce or property. In CIS, the investors do not have a day-to-day control over the management, operation of the scheme or arrangement.
In the Ashirbad scheme, the company first receives earnest money in instalments from a purchaser, pools the funds so mobilised and uses it to develop the land labs and thereafter provides return at the option of the investor on the amount invested at the end of the scheme in the form of credit value.
Calling the scheme a CIS, SEBI said, “Investors have an option to receive the credit value after making payment of the entire earnest money instalments. It is observed that investment is made with a view to earn profit.”
The company has land banks spread across West Bengal in Rajarhat, Durgapur, Siliguri, and also in Tripura, Madhya Pradesh and Orissa.
The country’s largest car maker Maruti Suzuki India Ltd (MSI) today reported 17.01% jump in its sales for December 2010 at 99,225 units.
Sales for the same month previous year were at 84,804 units, MSI said in a statement.
The National Capital-based company’s figures for the domestic market stood at 89,469 units in last month, a 26.01% increase from 71,000 units in December 2009, it added.
MSI’s exports in December 2010, however, fell by 29.32% to 9,756 units from 13,804 units in the year-ago period, the company added.
The sales of the company’s once bread-and-butter model M800 also declined by 30.15 per cent to 1,798 units from 2,574 units in December 2009, the statement said.
The A2 segment (comprising Alto, WagonR, Estilo, Swift, A-Star and Ritz) witnessed 23.
On Tuesday, MSI ended 0.11% up at Rs1,429.25 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.30% to 20,498.72 points.
Public sector lender State Bank of India (SBI) will set up a branch in Doha during the first quarter of 2011, said a senior bank official.
“The new office should start functioning by March 2011,” chief executive officer-designate for the SBI branch, Satyajit Pratap told Qatar Tribune on Monday.
As per the report, the bank had sought authorisation from the Qatar Financial Centre Regulatory Authority (QFCRA) to open a whole sale banking unit in Qatar in May 2010.
The opening of a business office in Doha was an important part of the SBI’s aggressive global expansion programme, he added.
The bank, which has set up an overseas banking unit at its headquarters in Mumbai to assess and explore its expansion activities abroad, is keen on increasing the bank's footprint globally.
On Tuesday, SBI ended 3.09% down at Rs2,733.60 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.30% to 20,498.72 points.