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Capital market regulator Securities and Exchange Board of India (Sebi) has said that certain companies are continuing to mobilise funds from the public, defying a ban on them.
"it has been observed that certain entities collect money under existing or new schemes even after Sebi has directed the entity not to collect any further money, not to launch any new schemes etc, which is unauthorised and illegal," said the market regulator in a release cautioning investors.
Sebi asked investors to be careful of persons and entities offering returns that are much greater than those offered by regulated entities such as banks and mutual funds.
The market regulator said it had passed orders against 51 entities for operating collective investment schemes (CIS) without proper approvals.
Some of the companies barred from such fundraising by Sebi include MPS Greenery Developers, PACL and Rose Valley Real Estate.
The regulator said if these 51 entities are found to be collecting money, investors should report it to the authorities as well as the police. It advised investors to invest in schemes that are regulated by authorities like Sebi, insurance regulator Irda, pension regulator PFRDA and banking regulator RBI.
