Cracking the whip, Sebi today barred Sanghi Plantations and its five directors from the capital markets for illegally garnering money from the public in the name of "teak plantation" scheme.
Besides, these entities have been directed to refund, within three months, the investors money that the firm had raised through illegal collective investment schemes (CIS).
According to Sebi, Sanghi Plantations had collected money to the tune of Rs 4.17 crore from over 27,000 investors for a teak plantation scheme, which was found to be in the nature of a CIS.
These funds were raised without obtaining necessary registration from the regulator.
In an order passed today, Sebi has asked Sanghi Plantations and its directors -- Siddharth Sanghi, Amit Sanghi, Kodhaty Chandrasekhar Rao, Seshadri Upadhyayula, Benda Ram Narayan -- "to wind up the existing CIS and refund the money collected by it... with returns which are due to the investors.. within a period of three months".
Besides, these five directors have been banned for at least four years. Further, they have been restrained from "holding position as directors or key managerial personnel of any listed company for a period of four years," Sebi said.
In case these entities fail to comply with the directions, the regulator will initiate recovery proceedings against them.
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