Sebi bars Emerging India from raising fresh capital

Cracking the whip on investment schemes by Emerging India Infra (EIIL), market regulator Sebi today barred the company and its directors from raising fresh capital from the public with immediate effect.
The order follows a complaint alleging illegal mobilisation of funds by the company from the general public in Punjab, Haryana, Rajasthan and Chandigarh.
It was alleged that various entities of Emerging Group of companies, which are in operation since 2009, mobilised more than Rs 300 crore by resorting to 'ponzi schemes' and Collective Investment Schemes (CIS).
The Securities and Exchange Board of India (Sebi) found that EIIL was running CIS without obtaining a registration from the regulator.

The company was inviting investments from the general public through its 'purchase, sale, lease and develop land' scheme.
In an order, Sebi has directed the company and its directors -- Gurpreet Singh Sidhu, Gurlal Singh, Harminder Singh, Ashok Kumar, Sunil Singh and Prashant Sharma -- "not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new scheme".

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 alienating any of the properties or assets owned or acquired through the money raised.

Furthermore, they cannot divert any funds raised from the public at large which are kept in the bank account of the company.
They need to furnish all details of the investors, among other information, to Sebi.
The order "shall come into force with immediate effect and shall continue to be in force till further directions".