Says the association, "As per legal opinion available with us, SEBI has no jurisdiction/authority under the Securities and Exchange Board of India Act, 1992, or any other law in force to issue directions to agro/plantation companies regarding existing schemes, sponsored or carried on by these companies." The association says there is no impediment in carrying on existing schemes and directs investors to ignore the public notice issued by SEBI in some of the leading dailies on April 14.

The preamble of the SEBI Act 1992 (under which SEBI has been set up) reads, "To protect the interest of investors in securities and to promote the development of and regulate the securities market andfor matters connected therewith or incidental thereto..." According to the association, collective investment schemes other than marketable securities operating in the securities market do not fall under the purview of SEBI."The market regulator cannot override the SEBI Act, 1992, or any other Act," the association notes.

The association also argues that SEBI's public notice is "arbitrary and without authority of law and jurisdiction". It says, "The notice has created apprehension and confusion in the minds of investors/public and is likely to jeopardize the existing schemes and investments made by investors." The association accuses SEBI of ad-hocism and says the manner and approach adopted by SEBI has resulted in a virtual collapse of the industry which plays a vital role in hi-tech agri plantation projects, environment protection and employment generation. "The ad-hoc issuance of such public notices by the market regulator is damaging to the names and reputation of our members for which SEBI is solelyliable," the association adds.

Reaffirming that there is no impediment in carrying on the existing schemes of agri plantation companies, the association will take appropriate steps to protect the interest of investors, its members as well as the industry at large.