(1) An existing collective investment scheme which:
(a) has failed to make an application for registration to the Board;
or
(b) has not been granted provisional registration by the Board; or
(c) having obtained provisional registration fails to comply with theprovisions of regulation 71;
shall wind up the existing 209 [collective investment scheme].
(2) The existing Collective Investment Scheme to be wound up under sub-regulation(1) shall send an information memorandum to the investors whohave subscribed to the 210 [collective investment scheme]s, within two months from the date of receiptof intimation from the Board, detailing the state of affairs of the 211 [collective investment scheme], theamount repayable to each investor and the manner in which such amount isdetermined.
(3) The information memorandum referred to in sub-regulation (2) shall bedated and signed by all the directors of the 212 [collective investment scheme].
(4) The Board may specify such other disclosures to be made in theinformation memorandum, as it deems fit.
(5) The information memorandum shall be sent to the investors within oneweek from the date of the information memorandum.
(6) The information memorandum shall explicitly state that investors desirousof continuing with the 213 [collective investment scheme] shall have to give a positive consent within onemonth from the date of the information memorandum to continue with the 214 [collective investment scheme].
208Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
209ibid.
210ibid.
211ibid.
212ibid.
213ibid.
214ibid.
(7) The investors who give positive consent under sub-regulation (6), shallcontinue with the 215 [collective investment scheme] at their risk and responsibility :
Provided that if the positive consent to continue with the 216 [collective investment scheme], is receivedfrom only twenty-five per cent or less of the total number of existing investors,the 217 [collective investment scheme] shall be wound up.
(8) The payment to the investors, shall be made within three months of thedate of the information memorandum.
(9) On completion of the winding up, the existing collective investmentscheme shall file with the Board such reports, as may be specified by theBoard.
Existing 218 [collective investment scheme] not desirous of obtaining registration to repay
74. An existing collective investment scheme which is not desirous ofobtaining provisional registration from the Board shall formulate a scheme ofrepayment and make such repayment to the existing investors in the mannerspecified in regulation 73.
219[CHAPTER IX A EXISTING SCHEMES OR ARRANGEMENTS DEEMED TO BE A COLLECTIVE INVESTMENT SCHEME Existing schemes or arrangements deemed to be a collective investment scheme to obtain provisional registration