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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:
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Till date, no plantation company has received any registration from SEBI
as the regulations for plantation companies are yet to be notified.
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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.
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No plantation company can raise any funds without obtaining a rating from
one of the 4 accredited rating agencies.
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SEBI has received information about ratings from 27 plantation companies
and their names and ratings obtained by them are given below.
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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.
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The investors investing in these schemes would be doing so at their own
risk.
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SEBI advises investors not be mislead by promises of high returns, incentives,
tax benefits, etc.
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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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