The association has put forward various suggestions like the new norms should make distinction between genuine and fraudulent companies, credit rating should not be mandatory, a cap on the amount of commission given to agents, allow surplus cash of plantation companies to be invested in real estate, grant exemption from the Land Ceiling Act and evolve proper costing and accounting norms. The 59-member association has made these suggestions on Thursday.

The Dave panel agreed on the fact that when new guidelines are framed enough time should be given to these companies for rescheduling and restructuring their liabilities and that there should be a cap on the commission paid to agents.

While the Dave committee would be pondering on the recommendations made by AAPCI, committeerejected the demand that plantation companies should be allowed to invest their surplus cash in real estate and other assets. The committee would be working on costing and accounting norms, the issue of credit rating and other issues.

``Because of the stringent collecting norms that have come about in the last few months these companies have been facing a lot of difficulty in raising fresh capital as well as meeting the redemptions coming from panicky investors,'' said S A Dave, chairman of the committee working on framing the guidelines for collective investment schemes.

Dave said the expense ratio of plantation companies was very high due to huge commissions being paid to agents and that there should be a cap on the the amount of money that is spent on increasing sales.

``AAPCI has suggested that plantation companies would be willing to adhere to all disclosures and transparency norms that the Dave committee suggests from time to time, but would not like to go for mandatory credit rating as it isimpossible for the existing plantation companies to get a good credit rating,'' said Dave.

Additionally, the AAPCI appealed, that the Dave committee should recommend to the State governments that the plantations companies should also be exempted from the Land Ceiling Act like other plantation companies of tea, rubber, coffee and silk.

``They want that the Land Ceiling Act be either amended or all the plantation companies be exempted from this Act. If the plantation companies are exempted, it would benefit both the investors and the companies, in the sense that the land can be treated as an asset of the plantation company and if a liquidation is required, then the land can be sold off immediately for recovery,'' said Dave.

On investing in real estate and other avenues, Dave said that investing in some short term instruments could be allowed. A delegation of people, from Sebi, would be shortly visiting New-Zealand and Australia to study the way in which collective investment schemes are regulated amongother issues.