Sebi cracks whip on Green Buds collective investment scheme

Cracking down on an illicit money pooling that allegedly duped villagers and women in Karnataka of Rs 300 crore, the Securities and Exchange Board of India (Sebi) has barred Green Buds Agro Farms, run by a husband-wife duo, and its directors from running such schemes and to give details of their assets and investors. Sebi began a probe against Green Buds after it came across reports that the firm and its directors had collected Rs 300 crore from 600,000 investors across Karnataka, mostly villagers and women. According to Sebi's findings, the firm was inviting funds from public under an unauthorised 'collective investment scheme' with promised interest rates of 20-25 per cent as returns. In an order dated May 16, Sebi said as no prior registration was obtained by Green Buds for running the collective investment scheme, it was "illegally mobilising funds from the public, which prima facie amounts to a fraudulent practice".