Leisure Hill Cottage Ltd., collected ₹500 crore from general public under its novel scheme, "Roaming Holiday". The scheme provides monthly instalments and upon completion of installment tenure, the investor can opt for h

As per Regulation 2(2) of the SEBI (Collective Investment Schemes) Regulations, 1999, the expression 'collective investment scheme' shall have the same meaning as assigned to it under section 11AA of the SEBI Act, 1992. Proviso to Section 11AA(1) of the SEBI Act, 1992 provides that any pooling of funds under any scheme or arrangement, which is not registered with SEBI, involving a corpus amount of one hundred crore rupees or more shall be deemed to be a collective investment scheme. Section 11AA (2) of the SEBI Act, 1992 provides that the following scheme or arrangement made or offered by any person shall be a collective investment scheme under which,- (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable, from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; (iv) the investors do not have day-to-day control over the management and operation of the scheme or arrangement. Section 11AA (2A) of the SEBI Act, 1992 provides that any scheme or arrangement made or offered by any person satisfying the conditions as may be specified in accordance with the regulations made under this Act shall be a collective investment scheme. In view of the above, since Leisure Hill Cottage Ltd. collected ₹500 crore from general public under its novel scheme, "Roaming Holiday", meeting the criteria given as above, this scheme comes under the SEBI (Collective Investment Schemes) Regulations, 1999.