Market regulator Sebi today directed Sheen Agro and Plantations to wind up its unauthorised collective investment schemes and refund investors' money along with interest within three months.
Besides, Sheen Agro and its 17 directors/promoters have also been barred by Sebi from accessing the securities market till the time all collective investment schemes launched by the firm are wound up and the money refunded to the investors.
"I find that the company has been engaged in mobilizing contributions from public in the nature of 'collective investment scheme' without obtaining certificate of registration from Sebi," Sebi Whole Time Member Rajeev Kumar Agarwal said in an order.
Consequently, the regulator asked Sheen Agro and its present promoters/directors "to wind up its scheme and refund the money collected by it under the scheme with returns which are due to the investors as per the terms of offer within a period of three months from the date of this order."
Further, the firm would have to submit a winding up and repayment report to Sebi, including trail of funds claimed to be refunded and bank account statements indicating refund to the investors.
According to Sebi, if the company fails to comply with its directives, a reference would be made to the state government and local police to register a civil/criminal case against them for fraud and cheating.
Moreover, a reference would also be made to the Ministry of Corporate Affairs to initiate the process of winding up of Sheen Agro, while the market regulator would also begin attachment and recovery proceedings against the company.
The company and 17 persons "who are/were directors/promoters managers/persons responsible for its actions at the relevant time are directed to not to access the securities market and are further restrained and prohibited from buying, selling or otherwise dealing in the securities market till all CIS launched by Sheen Agro are wound up and all the money mobilised through it are refunded to investors."
The regulator said its "directions shall come into force with immediate effect".
The company had mobilised a total of Rs 2.34 crore from over 3,000 investors. It claims to made a payment of Rs 51 lakhs during October 2010 to January 2011.
The Securities and Exchange Board of India (Sebi), received several complaints in 2006 alleging that Sheen Agro had not repaid the amount due to its investors on maturity of their investments made in the scheme of the company, during 2002-04.
It was observed that in 2004, Sheen Agro had accepted investments from the public even after furnishing a Winding up and Repayment Report to Sebi.
