Chandigarh-based firm PGF has informed the Supreme Court that it is trying to work out a compromise with the Securities and Exchange Board of India over a 10-year ban imposed on the company for running investment schemes without undergoing the mandatory registration process.
Counsel for PGF made the disclosure today during hearing of an appeal challenging the Securities and Appellate Tribunal’s decision to uphold SEBI’s ban on the company. The counsel informed the apex court that the firm is engaged in talks with SEBI over the issue and has sought some time.
Admitting the plea, a three-judge Bench headed by the Chief Justice, Mr S.H. Kapadia, adjourned the matter and scheduled the next hearing after eight weeks.
The Supreme Court had in last July directed PGF, which had collected money from the public for investment schemes without registering itself with SEBI, to return the sum appropriated from investors.
The market regulator had banned the firm in 2002 after it found that PGF was running investment schemes without mandatory registration and directed it to return the investors’ money.
Later in 2008, SEBI found that the money was allegedly not paid back by the firm, following which the market regulator banned PGF and its directors from accessing the stock market for 10 years.
SEBI had also stopped a second investment scheme launched by PGF for the sale, purchase and development of agricultural land. This was later challenged by PGF before the Securities and Appellate Tribunal, which also upheld the decision of SEBI.
Subsequently, the firm moved the Supreme Court, which had asked it to submit the documents so it could ascertain the nature of the firm’s business and take a decision on SEBI’s directive.