In a fresh crackdown on illegal money pooling schemes, capital market regulator Sebi has barred Disc Assets Lead India and its directors from raising fresh money from investors as well as launching any new scheme till further order.
A Sebi conducted probe found that the company garnered around Rs 850 crore from investors through various schemes for "purchase, development and maintenance of agricultural land".
Disc Assets Lead India was running a collective investment scheme without securing approval from Securities and Exchange Board of India (Sebi).
Out of Rs 850 crore mobilised from investors, the company had assets in the form of land only to the extent of Rs 206 crore. The remaining funds were used by the company for pre-paid expenses, loans and advances, investment in its wholly owned subsidiaries, Sebi said in an order.
In its order, Sebi has asked the firm and its directors (including former directors) -- Nithiyanantham Arun kumar, Vivekanandam Janarthanan, Srinivasan Chidambaram, Shyamchander Thanikodi, Nithiyanantham Malathi Umashankar and S Jeevalatha Sridhar "not to collect any fresh money from investors for its existing schemes", as well as not to launch any new scheme to raise fresh funds.
Further, Sebi has prohibited the company from disposing of assets of the existing scheme, diverting any funds raised from investors kept in its bank accounts.
