SAT asks Sebi to pass final order in Rose Valley case

The Securities Appellate Tribunal (SAT) has asked the regulator Sebi to pass a final order in Rose Valley 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.In its order issued on September 26, the tribunal has asked Securities and Exchange Board of India (Sebi) to furnish any additional material to Rose Valley Real Estates and Construction within two weeks from the date of the order.Further, it has asked the company to file objections, if any, within four weeks from the date of receiving additional materials from the market regulator.Following the receipt of the objection from the company, final order would be passed by Sebi within a period of four months, SAT said in the order.The order came on the basis that Sebi restriction on Rose Valley had been in operation for more than two years and that Sebi was "agreeable to pass final order in a time bound manner"."Sebi shall not take any coercive steps in furtherance to impugned order until passing of final order," SAT said.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."