Thursday, July 18, 2013

Sebi restrains two firms, their directors in ponzi crackdown

New Delhi, Jul 17 (PTI) Continuing its clampdown against illegal money-collection schemes promising huge returns, Sebi today restrained two companies and their directors from raising further public funds and asked them not to divert any funds or sell any properties till further orders.

The regulator found that Sai Prasad Properties and its group company Sai Prasad Foods were running unauthorised Collective Investment Schemes (CIS) in the name of sale and purchase of land parcels from thousands of people in Madhya Pradesh and other areas with promise of total money back along with returns of 15-20 per cent per year.

The returns were linked to the new investors added by the existing investors, giving them a shape of ponzi schemes.

Passing two separate orders against these companies and their directors, the regulator said it felt it necessary to take immediate interim steps to ensure that no investors are defrauded. It said the companies are prevented from further carrying on with their fund mobilising activity related to ''collective investment scheme'', without registering with Sebi.

As per the orders, Sai Prasad Foods and its directors -- Balasaheb K Bhapkar, Vandana B Bhapkar and Shashank B Bhapkar -- have been asked not to collect any more money from investors including under the existing schemes. They have been barred from launching any new schemes as well.

Besides, they have also been ordered not to dispose of any of the properties or alienate any of the assets of the schemes and not to divert any funds raised from public at large which are kept in bank accounts and/or are in its custody.

Similar orders have been passed against Sai Prasad Properties and its directors/promoters -- Balasaheb K Bhapkar and Vandana B Bhapkar.

Sebi has asked the two companies and their directors to file their replies, if any, within 15 days. .
Thu, 18 Jul 2013 17:32:38 GMT

No comments:

Post a Comment