PACL to appeal to the SAT against SEBI’s orders
The amount that PACL Limited has been ordered to return by the stock market regulator SEBI would be $8.1 billion or Rs 49,100 crore in deposits. The Securities and Exchange Board of India (SEBI) has asked PACL to return this sum to the investors within three months. PACL now plans to appeal to the Securities Appellate Tribunal (SAT).
PACL’s spokesperson stated that the company in its submission to the Honourable SEBI bench had submitted that it is not running a collective investment scheme (CIS). Further the company spokesperson also stated that the company has sufficient asset holdings vis-a-vis the money raised for its real estate business.
PACL’s management was upset as SEBI has unfortunately failed to recognise the submissions of the company that it can’t be treated like a CIS. The company has now decided to appeal this order before the Securities Appellate Tribunal.
The spokesperson from PACL wanted to clarify the stand of the company and stated that PACL limited has always kept the customers’ interests above all. The company would also like to remind its customers that it has always kept their interest paramount and would continue to do so.
The statement issued by PACL mentioned that the company assures the customers that their investments are safe & their interests would not be jeopardised. However this entire episode has created a ripple among the investors.
Source- The Economic Times
collective investment scheme, PACL, PACL Limited, SEBI, Securities and Exchange Board of India, Securities Appellate Tribunal
