Objection under sec 12 (1b) of sebi act
I have taken up land on Lease for 20 years. Have built a farm with shelters for rearing pigs and also built a fish pond. as both the fishery and piggery business go hand in hand (supplement each other).
Project cost having escalled up, I am not in a position to buy piglets nor provide for their food supplies and so have approached known people to invest in my project. With the present infrastructure that i have, i can house almost 500 to 700 pigs. I propose to take money from people willing to invest in my farm on a profit sharing basis. Will my acceptance of fund from such investors voilate the sec. above cited. each investor may put in about Rs. 10000/- to 50000/- and will be expecting me to give them twice their money over a period of 24 months. I would here have to take care of the pigs bought out of their money, arrange for their vaccination, feed, rearing and breeding. From my end it will be a very profitable venture as each female pig (sow) will deliver 8 to 12 piglets and i can have almost 3 crops in two years. this apart from selling the sow for cost in its weight. I need guidance as to whether i will voilate the rules of sebi. in such a case all my efforts will go down the drain. I need your guidance in regards how i am to handle such a situation. can i approach the sebi for approval of my project & if so under what clause and section or rather how do i have to approach them.