Sebi bars GCA Marketing, its Directors from securities market

Capital markets regulator Sebi today imposed a four-year ban on GCA Marketing and its two directors from the securities market for illegally raising Rs 428 crore and directed them to refund the money to investors.
The company mopped up the amount by running an illegal collective investment scheme (CIS) in the name of contract farming.
GCA Marketing has claimed that part of the nearly Rs 428 crore has been repaid to investors.
In an order, the Securities and Exchange Board of India (Sebi) barred the firm and its directors -- Amardeep Singh Cheema and Gurdeep Singh -- from the capital market for four years.

According to the regulator, GCA Marketing used to solicit money from investors through single, monthly and yearly payment plans and leased out plants with an assured buyback.
"The brochure of the company provides for the assured buyback price option in which the assured harvest (in quintals) is given to the customers at a pre-calculated buyback price (i.E. Rs 7 per kg)," the order said.

The company has customers in Bihar, Haryana, Punjab, Maharashtra, Assam and Odisha, among other states. It also has farm lands mainly in Uttar Pradesh, Rajasthan and Andhra Pradesh.
Apart from asking them to refund the amount, the watchdog has directed the entities to wind up their schemes. The money collected has to be repaid as per terms of the offer.

The refund has to be made within three months.
Sebi has also barred them from selling any assets of the company except for the purpose of making refunds to investors.
In case of non-compliance, the restrictions would be in place on the company and its directors till all the collective investment schemes are wound up and money is refunded.