In Brief
This case involved multiple consolidated criminal appeals concerning directors of companies operating collective investment schemes without proper registration under SEBI regulations. The Supreme Court interpreted Section 12(1B) of the SEBI Act, 1992, which prohibits collective investment schemes without SEBI registration. The Court held that the prohibition created two categories: existing schemes (pre-25.1.1995) and new schemes (post-25.1.1995). Directors who resigned before the Collective Investment Regulations were notified (15.10.1999) could not be held liable for breach of those regulations. The Court also applied the limitation period under Section 468 of the CrPC, finding complaints filed beyond one year of a director's resignation to be barred. The appeals were partly allowed, quashing complaints against directors who had resigned before relevant regulations came into force.
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