Saket Agarwal, Assistant Professor, JECRC University, Jaipur
ABSTRACT
One of the many methods of raising finance includes the Collective Investment Scheme. Here, investments are invited from the public at large and subsequent contributions are managed by an appointed third party to achieve the said purpose. In India, a CIS is regulated by the SEBI through the SEBI (Collective Investment Schemes) Regulations, 1999. Currently, an effective regulation of such investment schemes has assumed strategic significance; post Saradha Scam. This has also given rise to the rise in number of litigations pertaining to it. Situations have become much more complex with the IBC in picture. The purpose of this research is to analyse one such case of Bhanu Ram v. HBN Dairies Ltd.1 The question ‘whether a defaulting promoter of the CIS can be dragged before the NCLT under IBC’ is analysed here. This case assumes importance in the light of interjurisdictional conflicts between SEBI and NCLT as well as for the discussion on CIS.
Keywords: Collective Investment Scheme, Jurisdiction, Corporate Debtor, Insolvency, Bankruptcy
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