SEBI asks Life Care Infra Tech to refund money collected from investors
Life Care is also required to give wide publicity in the press regarding the refund so that no investor is missed out in the refund process, SEBI said.
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Life Care Infra Tech Ltd and its directors to refund to investors’ money collected by the company with an interest of 15%.
  
“The company and its directors have also been restrained and prohibited from buying, selling or otherwise dealing in the securities market, from the date of this order till the expiry of four years from the date of completion of refunds to investors,” SEBI said in an order. 
 
Life Care Infra Tech has garnered money from investors through issuance of redeemable preference shares. SEBI Order said the company and its directors are also required to keep away from the securities market and not to approach retail investors in any manner for collecting money from the date of the Order till the expiry of four years from the date of completion of refunds to investors.
 
According to the SEBI Order, the company was engaged in fund mobilising activity through issuance of Redeemable Preference Shares, to more than 49 persons, without complying with the relevant provisions of the Companies Act, 1956.
 
Life Care is also required to give wide publicity in the press regarding the refund so that no investor is missed out in the refund process, SEBI said.
 

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SEBI directs Agri Gold Farm Estates not to collect money from investors
Agri Gold Farm Estates India was found engaged in mobilising funds from the investors under its schemes, violating the provisions of the SEBI Act and SEBI (Collective Investment Scheme) Regulations, 1999, according to a SEBI Order
 
Market regulator Securities and Exchange Board of India (SEBI) has directed Agri Gold Farm Estates India Pvt Ltd and its six directors not to collect money illegally from investors or launch any new collective investment scheme (CIS) to garner funds.
 
SEBI said, Agri Gold Farm Estates and its directors, Venkata Rama Rao Avva,  Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, Savadam Srinivas, Moganti Bhanuji Rao and Emmadi Sada Siva Vara Prasad Rao, will wind up all existing CIS, where investors have given money. They are also barred from approaching or involving themselves in any manner with the securities market for a period of four years.
 
The company and its directors are required to desist from disposing of their assets and to account for all their assets to SEBI.
 
Agri Gold Farm Estates was found engaged in mobilising funds from the investors under its schemes, violating the provisions of the SEBI Act and SEBI (Collective Investment Scheme) Regulations, 1999, according to the SEBI Order.
 

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SEBI asks PACL to pay Rs7,269 crore fine for illegal money collection
PACL, formerly Pearls Agrotech Corp is asked to pay Rs7269 crore as penalty for illegal and fraudulent mobilisation of funds from investors
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Delhi-based PACL Ltd (formerly Pearls Agrotech Corp) and its four directors to pay Rs7,269.5 crore as penalty for illegal and fraudulent mobilisation of funds from the public. SEBI said the company deserves "maximum penalty" for such large-scale duping of the common man.
 
"In the recent past, the country has suffered a lot in the hands of entities who indulge in such illegal money mobilisation under various schemes, wherein hard earned money of the common man has been duped. Thus, imposition of deterrent penalty is the need of the hour," SEBI said in its order.
 
In August this year, the Securities Appellate Tribunal (SAT) had upheld SEBI’s order of last year that had asked PACL to refund money to investors in a land-purchase scheme operated like a mutual fund. According to SEBI, PACL has 58.5 million customers.
 
Last year in August, the market regulator, while barring the company and its promoters and directors from raising money had asked them to refund within three months Rs49,100 to investors. In pure rupee terms, the amount PACL is asked to refund is more than double of what Sahara group has been asked to return to investors by the Supreme Court. 
 
SEBI said that its probe revealed that PACL and its four directors – Tarlochan Singh, Sukhdev Singh, Gurmeet Singh and Subrata Bhattacharya – had mobilised funds from the public through illicit collective investment schemes including in the name of purchase and development of agriculture land.
 
SEBI said that PACL made huge illegal mobilisation of money, leading to consequent profit to the tune of over Rs2,423 crore in a short span of less than one year. In a strong-worded order, SEBI said, "Keeping in view the entire facts and circumstances of the case... there cannot be a better case than this which deserves the maximum penalty".
 
Under SEBI norms, it can impose a penalty of Rs25 crore or three times of the profit made by indulging in fraudulent and unfair trade practices and in the present case the regulator has imposed a fine equivalent to three times of the illicit gains.
 

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COMMENTS

integrity

1 year ago

Yet sahara cries foul and moan about SEBI's foul intent and malice. They even once said that they did not justice from the SC

integrity

1 year ago

Still Sahara cries foul and speaks of malicious intent on part of SEBI and even once said that they did not get "justice " from SC

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