Regulations
SEBI cracks whip on illegal investment scheme of HNC Infrastructures

The market regulator found 10,528 investors to have been offered unauthorised investment plan by MP-based HNC Infrastructures

 

Clamping down on an illegal scheme assuring high returns to investors for investment in land, market regulator Securities and Exchange Board of India (SEBI) has barred Madhya Pradesh-based HNC Infrastructures & Shares India Ltd and its four directors from raising any funds from public as well as from floating any new schemes.

 

Based on its preliminary findings into the scheme by HNC Infrastructures, SEBI found that the Madhya Pradesh-based company was running a 'collective investment scheme' (CIS) without requisite approvals and registration from the market regulator.

 

According to SEBI order, as many as 10,528 investors were found to have been offered the unauthorised investment plan by HNC Infrastructures.

 

Noting that immediate steps were required to prevent activities of entities from defrauding investors, SEBI has ordered HNC Infrastructures and its four promoters/directors "not to collect any fresh money from investors by its existing scheme" and "not to launch any new scheme/plan or float any new companies to raise fresh moneys"

 

Besides, SEBI has asked HNC and its promoters/directors not to dispose of any of the properties or alienate the assets of the existing scheme as well as not to divert any funds raised from public.

 

Moreover, they have been asked "to immediately" submit the full inventory of the assets owned by the company out of the amounts collected from the investors and to furnish all the information sought by SEBI such as sample copies of the documents and contracts executed with the investors for the purpose of the scheme.

 

The directions in the order have come into force with immediate effect, SEBI said.

 

The market watchdog had begun a probe into the matter after it had received a complaint on 28 November 2013, regarding the fund raising activity of the company.

 

SEBI observed that "the fund mobilising activity of HNC, promising an estimated returns/profit, has been camouflaged by HNC by way of a booking of land /plots for development, only to mislead and attract investment from the general public".

 

It added that "HNC is prima facie engaged in fund mobilising activity from the public, by floating/sponsoring/ launching 'collective investment scheme'... without obtaining a certificate of registration from SEBI as required".

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SEBI bars GreenTouch Projects, four directors from markets

SEBI also prohibited GreenTouch Projects Debenture Trust continuing with its present assignment as a debenture trustee for the NCDs offered by GTPL

 

Market regulator Securities and Exchange Board of India (SEBI) has barred GreenTouch Projects Ltd (GTPL) and its four directors, Shyam Sundar Dey, Snehasish Sarkar, Sujoy Sahaand and Sumon Sarkar from markets for allegedly violating norms by raising funds through issue of non-convertible redeemable debentures.

 

GreenTouch Projects was found to have allegedly violated the Debt Securities Regulations as well as provisions of the Companies Act.

 

In an interim order, SEBI has restrained GTPL and its three directors from accessing the securities market till further directions.

 

The watchdog has also directed the company not to mobilise funds from investors through offer for non-convertible redeemable debentures (NCDs) issuance of equity shares or any other securities.

 

Further, the company and these directors have been asked not to divert any funds raised from public at large through the NCDs.

 

"GreenTouch Projects Debenture Trust (represented by its Trustee, viz Swagata Kumar Maiti) is prohibited from continuing with its present assignment as a debenture trustee in respect of the offer of NCDs of GTPL and also from taking up any new assignment or involvement in any new issue of debentures, in a similar capacity," the order said.

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SEBI bars Kolkata-based MBK Business from raising funds

SEBI found that MBK Business had raised funds from thousands of investors through issue of secured redeemable debentures-SRDs

 

Continuing its crack down on illegal fund raising activities, market regulator Securities and Exchange Board of India (SEBI) has barred Kolkata-based MBK Business Development from raising funds from public through issue of securities. SEBI also prohibited the company and its three directors Prafulla Kumar Kundu, Saikat Roy and Anshuman Ghosh from accessing markets.

 

SEBI found that MBK had raised funds from thousands of investors through issue of secured redeemable debentures (SRD) and as a result of such activity had "prima facie" violated regulatory norms.

 

SEBI noted that MBK's debenture issue was made to over 50 persons which under the rules made it a public issue and therefore attract the requirement of compulsory listing before a recognized stock exchange as well a filing of a prospectus, which the company failed to do.

 

"Protecting the interests of investors is the foremost mandate for SEBI and therefore, steps have to be taken in the instant matter to ensure only legitimate fund raising activities are carried on by MBK and no investors are defrauded," the market regulator said in an order today.

 

Accordingly, SEBI has ordered MBK to "not mobilise funds from investors through the Offer of SRDs or through the issuance of equity shares or any other securities, to the public and/or invite subscription, in any manner whatsoever, either directly or indirectly till further directions".

 

Besides, the company and its three directors are barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.

 

"MBK and its directors, are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in the securities market, either directly or indirectly, till further directions," SEBI said.

 

SEBI has also asked the entities not to dispose any of the properties or assets acquired by that company through the issue of SRDs, without prior permission from the regulator, as well as not to divert the funds raised from public.

 

It has also asked the company and its directors to provide a full inventory of all its assets and properties.

 

MBK has been directed by SEBI to furnish complete and relevant information within 21 days.

 

Moreover, SEBI has "prohibited" trustees of Secured Debentures Trust of MBK Business Development India Ltd and from continuing with its present assignment as a debenture trustee in respect of the SRDs issue of the company and also from taking up any new assignment or involvement in any new issue of debentures, till further orders.

 

SEBI said that the trustees had acted as unregistered debenture trustee which was in violation of the norms.

 

The market regulator had begun its probe after receiving a request early last year to look into fund raising activity of MBK.

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