CIS: Sebi clamped on 60 companies in Jan-Nov

Taking strict action against illicit money pooling schemes, capital markets regulator Securities and Exchange Board of India (Sebi) had clamped on alittle over 60 companies in the first eleven months of 2015 for illegally raising crores of rupees.

In comparison, 45 firms were penalised by the regulator in all of 2014 for raising money through Collective Investment Schemes (CIS).

Among others, PACL, Raghav Capital, Emerging India, BNP India Developers & Infrastructure, Popular Agro, USK India, IHI developers, Samruddha Jeevan Foods, Yatra Art Fund, Wisdom Agrotech and JSR Diaries, were garnering money through unauthorised CIS last year. Besides, barring all these firms from mobilising further funds from investors, these companies and their directors have also been restrained from accessing the securities market.
 

Further proceedings are underway in many cases. They were asked to wind up their existing schemes and repay their money, with interest.

After, several restrictions have been imposed by Sebi on these companies through separate orders.

These companies were raising capital through unauthorised CIS without taking necessary regulatory approvals, thereby violating the provisions of the Companies Act, besides applicable Sebi regulations.