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Capital markets regulator Sebi has been asked to pass its final order within next eight weeks in the case of alleged irregularities in fund raising from the public by Kolkata-based Rose Valley.
The latest direction from the Securities Appellate Tribunal (SAT) has come after Sebi agreed to an extension of time sought by Rose Valley Real Estate and Construction.
"Respondents (Sebi) are directed to give further hearing to the appellant (Rose Valley) within a period of two weeks from today and pass final order within a period of six weeks thereafter," SAT said in an order dated April 29.
In its last order dated September 26, 2013, SAT had asked Sebi to pass a final order in this case within four months of receipt of any objection from the company in the matter.
In 2011, West Bengal-based Rose Valley Real Estates And Construction, a Rose Valley group firm, was barred by Sebi from raising funds from public on the charge that it did not have necessary regulatory approvals for running a collective investment scheme.
This is one of the numerous cases where the capital markets regulator has clamped down on various West Bengal based companies raising funds from the public through alleged irregularities.
The company had been allegedly raising funds from the public in certain areas of West Bengal in the name of sale of plots of land.
While the company 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 and did not seek market regulator's permission for the same.
In January 2011 order, Sebi had directed the firm "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.
