Sebi today slapped a fine of Rs 1 crore on Samruddha Jeevan Foods, its directors Mahesh Motewar and Vaishali Motewar for contravening regulator's earlier directions by continuing to collect the money from investors.
The regulator had imposed complete ban upon the entities from collecting any more money from investors under the existing schemes of the company in October 2015.
The case involves collection of funds by the entities from the various investors under the scheme in violation of the provisions of CIS (Collective Investment Scheme) Regulations.
In today's order, Securities and Exchange Board of India (Sebi) said that the entities were collecting money and the company has also admitted that it was collecting money from investors to honour its pre-existing contracts despite a complete ban imposed by October 2015 order.
The entities have not only committed breach of the applicable provisions of law but have brazenly contravened the directions issued through order as they have completely disregarded the order, the regulator said.
In my view, the non-compliance of directions in such cases is certainly a serious and heinous violation affecting the interest of investors, it added
Accordingly "maximum penalty" of Rs 1 crore was imposed on the entities.
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