SEBI warns investors on fraudulent fund collections; issues list of 233 companies
Some unlisted companies are luring retail investors by issuing securities including NPS, NCDs in the garb of private placement, warns SEBI while issuing a list of 233 such entities
Market regulator Securities and Exchange Board of India (SEBI), while warning investors about investing money in dubious investment schemes has issued a list of 233 companies, including Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd that are fraudulently raising money from public.
In a release, SEBI said it has taken action against 233 such entities for issuance of securities in the form of non-convertible and convertible preference shares (NPS-CPS), non-convertible and convertible debentures (NCDs-CDs) and equity shares to public, without complying with the prescribed provisions of law. As on 15 March 2016, SEBI said it has taken action against 233 companies in such cases.
Majority of the companies against whom SEBI has taken action are from West Bengal, followed by Odisha and Delhi.
The companies against which action has been taken include Kunnamkulam Paper Mills Ltd, SGI Research & Analysis Ltd, Prayag Infotech Hi-Rise Ltd, Vibgyor Allied Infrastructure Ltd, Kolkata Weir Industries Ltd, Ramel Industries Ltd, Regenix Drugs Ltd, Real Tulip India Ltd, Micro Leasing and Funding Ltd, Swarnabhumi Developers Ltd, SLB Invest (India) Ltd, Basil International Ltd, Greater Kolkata Infrastructure Ltd and Sukhchain Hire Purchase Ltd.
Moneylife has been constantly warning investors about not investing in such fraudulent companies. Some of the companies on which Moneylife wrote include, Pailan Agro India Ltd, StockGuru India-SGI Research & Analysis Ltd, and Ramel Industries Ltd.
Here is the list of companies, which have violated SEBI regulations…