This is the second major case after Sahara, where Sebi has invited refund claims from affected investors under a court order. Deadline for investors in Sahara's case ended on September 30.
Adopting a new strategy to collect funds for repayment to investors, Sebi has already initiated a process for an e-auction of land and buildings of Tower Infotech that had garnered money through its schemes from public.
The unauthorised money-collection schemes are widely known as 'chit funds' in West Bengal and other Eastern and North-Eastern states, although their operators are not registered as 'chit fund' companies in most cases.
The regulator has asked investors to submit their refund applications along with necessary documentary proof by October 25, 2014.
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The investors are required to submit the applications along with copies of documents like details of investment or deposits, bank account details, address proof and PAN number among others.
Sebi has already initiated the process for sale of assets of Tower Infotech, as per an order from Calcutta High Court, under which an e-auction would be conducted for sale of land and buildings of the company.
The High Court has directed Sebi to sell certain assets of Tower Infotech and distribute the proceeds among duped depositors and debenture holders.
This is probably the first instance of Sebi conducting an e-auction to liquidate assets of a deposit-mobilising company for refund to the investors.