Press Release
August 17 , 1998
Ref.No.PR 226/98 
 Collective Investment Schemes
Primary Market Dept.

SEBI has, from time to time, been advising investors to exercise great deal of caution before investing in any high risk plantation scheme. Many investors have been approaching SEBI for advise on the financial health of individual plantation companies. SEBI wishes to clarify the following points: 
 

  1. Till date, no plantation company has received any registration from SEBI as the regulations for plantation companies are yet to be notified.
  2.  

  3. SEBI only has limited information about the schemes floated by these companies and is not in a position to give any advise on their financial health. However, the audit of many of these entities, have revealed an unsatisfactory state of financial health.
  4.  

  5. No plantation company can raise any funds without obtaining a rating from one of the 4 accredited rating agencies.
  6.  

  7. SEBI has received information about ratings from 27 plantation companies and their names and ratings obtained by them are given below.
  8.  

  9. All the plantation companies, rated so far, have been found to be below investment grade which implies that there is a very high risk perception for the investors contemplating investment in these schemes.
  10.  

  11. The investors investing in these schemes would be doing so at their own risk.
  12.  

  13. SEBI advises investors not be mislead by promises of high returns, incentives, tax benefits, etc.

  14.  
  15. Investors are cautioned not to be mislead by advertisements offering attractive returns and promises. Wherever the advertisements are not in conformity with the prescribed advertisement code, SEBI is initiating action against the entities which are issuing such advertisements.
Investors are advised to verify the credentials of the persons floating such schemes, check if the projects of these schemes have been appraised by a credible agency, understand the implications of the ratings and take all precautions before making any investments in these schemes. Members of the public are also advised to forward the names and addresses of any company which are mobilising funds or inviting subscription without obtaining a rating for their schemes. 
 
Ratings of Collective Investment Schemes
 

Based on the interim recommendations of the Dave Committee, SEBI had directed that no existing scheme shall mobilise any money from the public or from the investors under the existing schemes unless the instruments of such schemes carry a rating from any of the recognised credit rating agencies. 
 

As per the information available to SEBI, the following companies have obtained a rating of their collective investment schemes as on 14th August, 1998. 
 
 
Name of the company Rating Assigned
1. Swaranbhoomi Forests (India) Ltd. Grade V  
2. Rose Valley Resorts & Plantations Ltd.
Grade V  
3. TimberWorld Resorts and Plantations India Ltd.
Grade V  
4. Hariyali Plantations (India) Ltd.
CS5  
5. La Mark Farms Ltd
CARE- 5 (CIS)
6. Shivaji Estate & Livestock Farms Ltd.(SELF)
CARE- 5 (CIS)
7. Rajamudra Agrotech Ltd.
CARE- 5 (CIS) 

 
 
8. Sparrow Agro Forests Ltd.   Grade V
9. Mahakaushal Plantations Ltd  Grade V
10. Goldenland Development (I) Ltd. Grade V 
11. Enbee Plantations Ltd. CARE-5 (CIS)
12. Mahakaushal Plantations Ltd   Grade V
13. MARUTI Krishi Udyog (India) Ltd  CARE-5 (CIS)
14. Goldenland Development (I) Ltd  Grade V 
15. Southern Horticulture & Rubber Plantations Ltd.   CARE-5 (CIS) 
16. U.P Forest Plantations Ltd Grade V
17. Supreme Forests India Ltd.   CS-5
18. Assured Agro Park Ltd.  CS-5
19. Mehna Plantations Pvt. Ltd. DCR Ind 5 (CIS) 
20. Sonali Agro Industries & Resorts Ltd. DCR Ind 5 (CIS)
21. Nisarga Forests (India) Ltd. CARE 5(CIS)
22. Agriotek India Ltd. CS-5
23. Kalp Varksha Plantations Ltd. CS-5
24. Anubhav Plantations Ltd. DCR Ind 4 (CIS)
25. Naturoworth & Medico Plant Ltd. DCR Ind 5 (CIS)
26. Endowment Agro projects (India) Ltd. Grade V
27. United Agrogrowth & Resorts Ltd. Care 5 (CIS)
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