Clamping down on unauthorised money pooling activities, Sebi today ordered two firms -- Garima Homes and Farm Houses and Anmol India Agro-Herbal Farming & Dairies Care Company -- to refund the money raised from such schemes to investors within three months.
Besides, the firms and their directors have also been barred from the capital markets for four years.
A Securities and Exchange Board of India (Sebi) probe found that Garima Homes pooled money from investors through various land schemes and Anmol India mobilised money in the garb of plant cultivation and animal rearing.
These companies had launched and operated collective investment schemes (CIS) without obtaining regulatory approval.
In two separate orders passed today, Sebi has asked the firms and their directors to wind up the existing CISs and refund the money collected by them along with returns which are due to its investors within a period of three months.
Anmol India said it has repaid Rs 97.35 crore to investors, which is 69 per cent of Rs 141.44 crore garnered from them. However, Sebi said the firm has not provided any verifiable proof to the regulator in this regard.
The companies and their directors are "restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of four years".
In case the companies fails to comply with these orders, Sebi would register a case with the state government or police against them for fraud, cheating and misappropriation of public funds.
Besides, Ministry of Corporate Affairs would initiate the process of winding up of the companies.
