V.K. Jain, J.

1. These appeals are directed against the judgment dated 25.11.2009 and the Order on Sentence dated 30.11.2009 whereby the appellants were convicted under Section 24 read with Section 27 of SEBI Act, 1999 and were sentenced to undergo rigorous imprisonment for one year each and to pay fine of Rs.1 lac each or to undergo SI for six (6) months each in default.

2. Section 12 (1B) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘the Act‘), which came to be inserted w.e.f. 25.1.1995, provides that no person shall sponsor or cause to be sponsored or carry on or cause to be carried on any venture capital funds or collective investment scheme (for short ‘CIS‘) including mutual funds, unless he obtains a certificate of registration from the Securities and Exchange Board of India (for short ‘SEBI) in accordance with the regulations. The proviso to the aforesaid sub-section, permits any person, sponsoring or causing to be sponsored, carrying or causing to be carried on any such fund or scheme operating in the security market immediately before 25.1.1995, for which no certificate of registration was required prior to the said date, to co