SEBI serves show-cause notices on four plantation companies

Securities and Exchange Board of India has issued show-cause notices to four plantation companies for their failure to adhere to the advertisement code prescribed by it. The companies are Enbee Plantations, Timberworld Resorts and Plantations, Mahakaushal Plantations and Swaranbhoomi Forests. Sebi has asked these companies to explain within 7 days why action should not be initiated against them for violating the Sebi Act. The other collective investment schemes have also been warned against issuing any advertisements without displaying prominently the rating symbol. Nearly four months after Sebi made it compulsory for plantation companies to get themselves rated before accessing public deposits, only 14 out of the 750-plus companies have done so. The ratings of another 10 companies are expected to be out by the end of the month. Interestingly, not one of the plantation companies have got past the grade V rating. This reflects a very high risk perception of the collective investmentschemes (CIS) in the opinion of the rating agencies.Analysts also doubt if the companies will be able to fetch the price that they claim at present. "With every company worth its salt having got into teak, mangum and other products, it is only obvious that there will be an oversupply at the time of maturity. This will lead to a softening of prices. Teak will be the worst hit," said an analyst. Yogiware told to refund issue MUMBAI SEBI has ordered Yogiware Fabrics, a Surat-based company, to refund the subscription amount collected by it through its public issue, along with interest at the rate of 15%. The company came out with its maiden issue for 60.4900000 equity shares of Rs 10 each at par in March 1997. A complaint received by Sebi alleging serious irregularities and subsequent investigations brought to the light the fact that the issue was subscribed to the extent of only 6.5% of the total public offering. YFL arranged for the remaining 93% after the closure of theissue from a financier, the regulator said.