Sebi bars 2 firms from raising funds from public

In one of its biggest crackdowns against a Madhya Pradesh-based company that allegedly raised Rs 600 crore through illicit investment schemes, Sebi today barred Suvidha Farming & Allied Ltd (SFAL) and its directors from mobilising fresh money from investors.
Also, Sebi in a separate order has barred another group firm Suvidha Land Developers India Ltd from garnering money from public through the issue of securities.
Suvidha Farming & Allied is alleged to have raised Rs 600 crore from thousands of investors on a promise of high returns under its a scheme for purchase and development of agricultural land.
In his 21-page order, Sebi Whole Time Member S Raman said "fund mobilization by SFAL with a promise of returns prima facie...Falls within the ambit of 'Collective Investment Schemes' (CIS)," and was being run without requisite approval from the regulator.

Accordingly, Sebi directed the company and its directors --Vinod Kumar Shankhwar, Rajendra Karn Rajpoot, Pardeshi Ram Jagdish Bisvas, Rajneesh Dutta--"not to collect any fresh moneys from investors from its existing scheme".
They can also not launch "any new scheme/plan or float any new companies/firm to raise fresh moneys".

They also have "to immediately submit the full inventory of the assets including land obtained through money raised".
Besides, the company and its directors have been barred from disposing of or alienate any of the properties or assets owned or acquired through the money raised.
Further, they cannot divert any funds raised from public at large which are kept in bank account of the company.

Suvidha Farming & Allied Ltd has to furnish all details of its investors, among other information, to Sebi within 15 days.
Moreover, the company has been asked to file its reply related to the case within 21 days.
According to Sebi, Suvidha Farming & Allied Ltd has mobilised an amount of approximately Rs 28.22 crore from 2.7 lakh investors during the financial years 2010-11 to 2013-14.
In a separate order, Sebi barred Suvidha Land Developers India from raising money from investors through the offer of Redeemable Preference Shares (RPS)or through any other securities in any manner either directly or indirectly, till further directions.

Sebi has levied various restriction Suvidha Land Developers India including prohibiting the company and its directors from the securities markets.
The regulator said the company issued RPS to 50 or more persons, it was under a legal obligation to get listed on a stock exchange. Among others, it was also mandatory for the company to bring out a prospectus with respect to the public issue. However, it failed to comply with the norms.
Sebi said that Suvidha Land Developers India issued and allotted RPS in series of allotments and raised about Rs 2.16 crore from 1,137 investors during 2013-14.