Regulations
SEBI cautions investors not to invest in 63 entities barred from raising money

SEBI said these 63 companies are illegally collecting mobilising money, from investors by making false promises and assuring unrealistic return and people should stay away from these entities

 

Market regulator Securities and Exchange Board of India (SEBI) has cautioned people from investing into 63 entities that are barred from markets. 
 
In a release, the market regulator said, “It has been observed that certain entities collect, mobilize money under existing or new schemes even after SEBI has directed such entities not to collect any further money and not to launch any new schemes. These companies or entities without obtaining registration are illegally collecting, mobilising money, from investors by making false promises and assuring unrealistic return.”
 
Wherever SEBI has found schemes offered by these entities, to be in the nature of Collective Investment Schemes (CIS), appropriate actions have been taken against the entities and its directors. In this regard, since 1 January 2011, SEBI has passed orders against 63 entities and its directors, for carrying on unregistered CIS. 
 
Here is the list of companies barred by SEBI:
 
 

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Nifty, Sensex headed higher – Weekly closing report

Nifty will remain bullish as long as it does not end the coming week below 8,200

 

The S&P BSE Sensex closed the week that ended on 16th January at 28,122 (up 664 points or 2.42%), while the NSE’s CNX Nifty ended at 8,514 (up 229 points or 2.77%).
From here, Nifty will remain bullish as long as it does not end the coming week below 8,200. Previous week we had mentioned that benchmarks currently directionless.
 
On Monday, the Nifty moved in a haphazard manner, but finally managed closing in the green for the third consecutive session. Nifty closed at 8,323 (up 39 points or 0.46%). Market sentiments were initially affected by the concern that Europe's stimulus plans may not solve the euro region's economic woes.
 
On Tuesday, although Nifty managed to move in the green for major part of the session,  towards the end of the session, it was pulled lower and closed near the day’s low at closed at 8,299 (down 24 points or 0.28%).
 
India's index of industrial production (IIP) increased at five-month high pace of 3.8% in November 2014, recovering from the sharpest pace in three-years at 4.2% recorded in October 2014. The annual rate of inflation based on the combined consumer price indices for urban and rural India rose to 5% in December 2014 from nine-year low of 4.4% in November 2014, while snapping consistent decline for last four sequential months.
 
On Wednesday, the loss on the Nifty continued. Nifty closed at 8,278 (down 22 points or 0.26%). Data showed inflation based on WPI stood at 0.11% in December 2014, as compared to zero in November 2014.
 
The World Bank had said that economic reform measures taken by the Indian government, after coming to power in May last year, may result in its catching up with China’s growth in the year 2016-17.
 
On Thursday, before market opening, a surprise rate cut from Reserve Bank of India (RBI) resulted in the benchmarks recording huge gains. Nifty closed at 8,494 (up 217 points or 2.62%). Data announced after market hours on Thursday showed trade deficit narrowed to 10-month low of $9.4 billion in December 2014, while nearly halving from $16.86 billion in November 2014.
 
After a volatile upmove the Indian benchmarks closed Friday, marginally higher. Nifty closed at 8,514 (up 20 points or 0.23%). 
 
The SBI Composite Index, an indicator for tracking India's manufacturing activity, slipped from 55.4 (high growth) in December 2014 to 51.5 (low growth) in January 2015.
 
Among the Nifty stocks, the top five stocks for the week were Ultratech Cement (12%); Hindustan Unilever (9%); ACC  (9%); IDFC (8%) and Bhel (7%) while the top five losers were Hindalco Industries (-11%); Sesa Sterlite (-7%); Cairn India (-5%); Tata Steel (-4%) and Bharti Airtel (-4%).
 
Of the 1,492 companies on the NSE, 811 companies closed in the green, 642 companies closed in the red while 39 companies closed flat.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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SEBI restrains NICL from raising funds under CIS
According to SEBI findings, the company had raised nearly Rs7 crore from thousands of investors
 
Cracking down on illicit realty investment activity, market regulator Securities and Exchange Board of India (SEBI) has barred NICL India Ltd from raising funds from the public and launching new schemes with immediate effect. Based on a preliminary probe, SEBI found that the Madhya Pradesh-based company was running a 'collective investment schemes (CIS)' related to purchase and development of land, without getting requisite certification.
 
According to SEBI findings, the company had raised nearly Rs7 crore from thousands of investors. In an order, the market regulator said that to safeguard investors’ interest and till the time final decision is taken in the case, it was "necessary" for it "to take urgent preventive action by way of an interim measure". The regulator has asked the company and its directors -- Phool Singh Choudhary, Harish Sharma and Abhishek Chauhan "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 of 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" obtained through money raised by NICL. It would also have to furnish, among others, details about the investors and amount mobilised and refunded.
 
SEBI had come across a news report in July 2013 in respect of fund mobilisation from general public by NICL. The news report also stated that another group company of NICL was issuing debentures to investors. It was alleged that the group companies were offering high commission to their agents.

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