Continuing its clamp down on ponzi activities, Sebi today imposed a four-year ban on Step Up Marketing Pvt Ltd and its two directors for illegally raising funds through a goat rearing scheme that promised high returns to investors.
Besides the company, its directors -- Harjit Singh Dhariwal and Raghbir Kaur -- have been banned from the securities market.
In August 2014, the regulator had barred the company and its directors till further directions.
These entities have now been restrained from securities market for four years and from raising funds through collective investment schemes. They have also been directed to refund the money raised within three months, Sebi said in its order today.
In case of failure to comply with the directions, the ban would be in place even after four years till all the collective investment schemes of the company are wound up and all monies mobilised are refunded along with returns that are due to the investors.
Under the investment scheme, the person investing in a goat had the option of keeping the purchased livestock with the company for breeding and rearing purposes for three-and- half years. For the same, the investor was required to sign on two application forms -- for purchase of livestock and for goat keeping.
The company carried out its activities through 'Real Step Pashupalan' and 'Real Step Breeding Farms' schemes.
According to Sebi, a reference to the state governments, local police to register a civil/criminal case against the company, its promoters, directors and its managers/ persons in-charge of the business and its schemes, for offences of fraud, among others.
Besides, a reference would be made to Corporate Affairs Ministry to initiate winding up process of the company.
In a separate case, Sebi has banned Moonlight Associates, its promoters/directors from the securities market for illegally raising funds.
The promoters/directors against whom directions have been issued include Nityananda Nath, Abu Sadeque Ishtiaque Ahmed Choudhury, Ferdousi Begum Choudhury, Samsul Islam, Nizam Uddin Ahmed, Kanai Lal Nath, Abdul Jalil Choudhury and Md Abdul Muktadir.
It was found that the company raised money through allotment of equity shares to 695 investors between 2007-2010 without making relevant disclosures which is in violation of Sebi norms.
