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Alchemist Infra Realty Limited And ... vs Sebi on 23 July, 2013

In the matter of Alchemist vs SEBI, the appellant therein was a public limited company developing high quality infrastructure and real estate within India as well as abroad. SEBI held that Alchemist was actually carrying on an unregistered CIS in contravention of provisions of section 12(1B) of the SEBI Act, 1992 and Regulation 3 of the CIS Regulations. Alchemist submitted that its business had nothing to do with the securities market and was under the supervision of the Ministry of Corporate Affairs. Therefore, no CIS certification from SEBI was required. 22 SEBI rejected this submission of Alchemist and argued that all the criteria required for a scheme to be declared as a CIS were being fulfilled by the so- called real estate business of Alchemist. SAT upheld SEBI's Order stating that the business of Alchemist was indeed covered by the definition of a CIS as provided in the SEBI Act.
Securities Appellate Tribunal Cites 22 - Cited by 5 - Full Document

Pacl Ltd. vs Sebi on 12 August, 2015

31. From an analysis of the facts of both matters viz. Alchemist and PACL, it is evident that the two are in stark contrast to each other. The CISs under PACL were declared to be sham transactions and detrimental to the interest of its investors, and thus, ordered to be wound up and money 23 returned to investors, without directing the procedure provided in Regulation 73 and Regulation 68 of the CIS Regulations be followed. On the other hand, the CISs launched under Alchemist did not threaten the interest of its investors as sham transactions in any manner. In the case of Alchemist, this Tribunal saw the transactions between Alchemist and its investors as genuine transfers under a non-registered CIS Scheme. The matter in Alchemist revolved solely around whether or not the schemes floated by Alchemist came under the definition of a CIS under Section 11AA of the SEBI Act. At this point, it is noteworthy to highlight an extract from the case of PACL Ltd vs SEBI.
Securities Appellate Tribunal Cites 32 - Cited by 5 - J P Devadhar - Full Document
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