Clamping down on illegal money pooling activity being run under the garb of realty scheme, Sebi today barred Rich Infra Developers India and its directors from raising funds from the public with immediate effect.
Based on a preliminary probe, Securities and Exchange Board of India (Sebi) found that Rajasthan-based firm were running 'collective investment schemes (CIS)' without obtaining certification from the market regulator.
The money was collected towards development of the land which could be located anywhere in India.
To safeguard investor interests Sebi in an order today said directed Rich Infra and its four directors "not to collect any fresh money from investors under its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
Additionally, the company and its directors have been directed not to dispose any assets obtained from the funds collected, while the entities also cannot divert money raised from the public.
Further, the entities have been asked "to immediately submit the full inventory of the assets including land obtained through money raised by Rich Infra Developers India".
The company also has to furnish all information sought by Sebi including details of amount mobilised by the firm till date, within next 15 days
Sebi had received a complaint on May 11, 2013 alleging that Rich Infra Developers India was giving huge returns to investors towards the investments in the company.
