The ban on NGHI, its promoters and its directors would continue, till the schemes of the company are wound up and all the monies are refunded to the investors
Mumbai: Jaipur-based NGHI Developers and related entities will remain barred from collecting money from investors and accessing the capital market for their failure to adhere to interim regulatory orders, Securities and Exchange Board of India (SEBI) said, reports PTI.
"The interim order restraining NGHI, its promoters and its directors namely Pipal Singh, Bakshish Singh and Avtar Singh from accessing or dealing in the securities market shall continue, till the schemes are wound up and all the monies are refunded to the investors, to the satisfaction of SEBI," the market regulator said in an order.
The company was collecting funds from the public for developing plots of land through its plans.
SEBI said the restraining order would continue as the company has failed to wind up its scheme --collective investment schemes (CIS)-- and refund the money collected by it with returns to investors within a period of one month from the date of interim order. The interim order was passed on 9th July this year.
The entities also failed to deposit the money collected from the investors under under various schemes in a separate bank account within the stipulated period of three days.
"NGHI has been found operating CIS without obtaining a certificate of registration from SEBI... Therefore, it is necessary that such schemes of NGHI are directed to be wound up and the monies of the investors, which have been invested in the schemes, are refunded to them by NGHI," the regulator said.
SEBI had said it appears that NGHI is related to another company -- Nicer Green Forests Ltd -- which is also under the regulator's radar.
SEBI said it had found that the company was substituting Nicer Green's investment certificates with the NGHI bonds.
It appears that NGHI promoters and directors are using the company as a vehicle to subvert the SEBI order against Nicer Green, SEBI said.
SEBI through an interim order dated 9 July 2012 had prohibited these entities from trading in the securities market and had also restrained from accessing the securities market.
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