Sebi bars GCA Marketing from raising money from public

Pulling the plug on yet another illicit investment scheme, market regulator Sebi today restrained GCA Marketing and its directors from raising fresh capital from the public with immediate effect.
Besides, it directed the company not to launch any new scheme.
The Securities and Exchange Board of India (Sebi) found that GCA Marketing was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
It found that the company has raised Rs 150 crore from the public by selling herbal products through multilevel marketing and by 'Contract Farming' agreements with farmers for sale of plant saplings or lease of farms etc.

"...The activity of mobilising money by GCA under 'scheme'/ plans with promise of returns prima facie satisfies the features of CIS," Sebi Whole Time Member S Raman said in an interim order.
Accordingly, Sebi directed GCA Marketing and its directors --Amarjeet Singh Cheema and Gurdeep Singh--"not to collect any fresh money from investors under its existing schemes" and also asked them "not to launch any new schemes or plans or float any new companies to raise fresh money."

Additionally, the company and its directors have been directed not to dispose any assets obtained from funds collected, while the entities also cannot divert money raised from the public.

Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by GCA Marketing " as well as furnish withing 15 days details related to the scheme.
These directions shall take effect "immediately and shall be in force until further orders in this regard.