Sebi Moves Against 5 More Plantation Units

Securities and Exchange Board of India (Sebi) today initiated criminal prosecution against five Mumbai-based companies for their violations of Sebi (Collective Investment Schemes) Regulations, 1999. This follows the regulator's similar move against eight firms yesterday.

The companies indulged in fraudulent activities by raising crores from investors without registering any schemes with Sebi. They also failed to wind up the companies or refund money to investors even after repeated orders by Sebi.

A Sebi official said criminal proceedings had been initiated against directors of these companies as well. The firms are Arrow Biotech International, Green Gold Forestry, Maharashtra Agritech, Shrishrimal Plantation, and Wealth Agro Plantations India.

 

Sources familiar with the development said the Sebi move followed observations of the Joint Parliamentary Committee probing the securities scam, recommending stern action against rogue managements.

Although the activities of such firms did not fall directly under its purview, JPC had noted that the funds raised by these companies were being used to create speculative frenzy in the market on select scrips.

The official said Sebi was determined to realize as much of the money as possible and give it back to investors. "If this does not happen, the unscrupulous promoters should at least be punished," he said. The official added that similar criminal proceedings would be initiated against more promoters soon.

Yesterday, Sebi had initiated criminal proceedings against eight firms namely, Pan India Forest & Land Development, Rainbow Perennial Krishi, Southern Horticulture & Rubber Plantation, Ace Agro Products, Eternal Agro, World View Teak Rich, Green Gold Agro Products and Green Gold Horticulture.