Investor Interest   Exclusive
Double Standards over Black Money
While Indians will face the consequences of a draconian law, ‘foreign money’ gets to hide as faceless Participatory Notes
 
In 2007, Prof R Vaidyanathan (of IIM Bengaluru) wrote in The Hindu Business Line that Participatory Notes (PNs) had “created a storm in the stock market, with SEBI (Securities and Exchange Board of India) coming out with a draft for discussion on how to regulate them, the Reserve Bank of India (RBI) suggesting that they be phased out, and the finance minister assuring that the government is not going to phase them out.” 
 
Prof Vaidyanathan, who is working on a book on Black Money & Tax Havens and India’s Wealth Abroad—and is a member of several committees of the capital market regulator—has been strongly in favour of phasing out these faceless investment instruments.
 
PNs are offshore derivative instruments issued by foreign institutional investors (FIIs) or their associates against underlying Indian securities. They are issued to investors who are either not qualified to invest in the Indian market or not registered with the regulators. By their very nature, PNs camouflage the beneficial ownership and the fact that they are quickly and easily transferable makes it almost impossible to track true ownership. 
 
Eight years after Prof Vaidyanathan’s article was published, it was déjà vu again. At the end of July 2015, a Supreme Court-monitored special investigation team (SIT) on black money caused another flutter by asking the capital market regulator to put in place regulation to pinpoint ‘final beneficial owners’ of PNs, right down to the individuals, or promoters and directors of companies that held the PNs.  
 
This was just a part of a slew of instructions to the market regulator to step up action and prosecution against those who use equity investment to manipulate prices and evade taxes. The SIT noted that SEBI has an effective market monitoring mechanism that can red-flag unusual market movement both in terms of price and trading volumes. It asked that this information should be shared with the tax authorities as well as the Financial Intelligence Unit (FIU) in the finance ministry. A part of these instructions was to ensure better transparency in FII investment through PNs with a serious attempt to track beneficial ownership.
 
Predictably, the SIT report led to sharp dip in stock prices. Immediately, in a replay of 2007, the SEBI chairman, UK Sinha, rushed to clarify that “neither the Special Investigation Team (SIT) on black money nor the government has suggested closing the P-Note route and it was a business requirement for a certain class of foreign investors.” If that were not enough, the finance ministry also rushed into needless damage control and assured investors that there will be no hasty decision on PNs based on the SIT report. Was this necessary? 
 
A lot has changed in the developed world since 2007. There is a serious crackdown on tax evasion as well as market manipulation. But things remain absolutely the same in India, as far as foreign portfolio investment is concerned. We have the finance minister rushing out to appease foreign investors at the first sign of market turmoil. And, we continue to have bankers and lawyers making the same tired arguments about how large foreign funds would not invest in India if they were asked to be transparent about beneficial ownership. 
 
In fact, all the evidence points to the contrary. Speaking at a Moneylife Foundation event on 29th July, Prof Vaidyanathan pointed out that increased longevity in the developed world has meant that giant pension funds are under pressure to locate markets, like India, which give them a return of over 4% after factoring in various risks. 
 
Consequently, clean institutional money is more likely to fall in line with domestic regulations, since they have nothing to hide. This is already happening. In 2007, nearly half the portfolio investment into India was from non-transparent PNs. Today, PNs are estimated to account for merely 11.5% of the total assets held by foreign portfolio investors. This would mean that institutional investors, convinced about the India story, probably, have their core holding through direct investments. The gradual tightening of disclosure rules over the past years would also have nudged them to register with SEBI. 
 
Instead of rushing to reassure FIIs that PNs will be allowed to continue, the finance minister ought to have announced a deadline for phasing out these non-transparent investments or to force full disclosure of beneficial ownership.
 
Prof Vaidyanathan correctly says that PNs are ‘a slap on the face of every citizen who is an investor’ who has to comply with tedious know your customer (KYC) requirements to buy even a single share. But a foreign investor can invest millions of dollars though faceless PNs. These double standards become even more of an insult in the context of the draconian Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 that has been passed by the Bharatiya Janata Party (BJP)-led government. 
 
The Act specifically focuses on ‘undisclosed foreign income and assets’ which cover everything—from immovable property to jewellery, bullion, shares (including ESOPs), archaeological collections and artwork. The government has also notified the rules for calculating overseas income and assets and has given people a small window until 30th September, to declare such assets and pay up a penalty, if they wish to avoid proceedings under the Act. 
 
Does this mean that the Act will only harass Indians who are not wealthy enough to route their funds through layers of numbered accounts and international banks? And, that it will assume that all foreign portfolio investment is clean and opts only for the PN route for ease of transaction? 
 
This would suggest that our government is hypocritical in ignoring the massive crackdown by the United States on the biggest names in global banking. The Wall Street Journal writes that “the biggest global banks have paid more than $60 billion in penalties over the past two years to resolve allegations of wrongdoing.”
 
Additionally, Germany, France, Australia and Britain as well as the G-20 countries have taken stringent measures to crackdown on tax havens. In 2009, the US Internal Revenue Service (IRS) and the Department of Justice (DOJ) broke through the famed Swiss bank secrecy laws. UBS, a top Swiss bank, revealed the names of account-holders in an issue that remains controversial with new disclosures about the Bank’s contributions to the Clinton Foundation. In 2014, Citigroup negotiated a $7-billion settlement with the US DOJ over dubious mortgage securities transactions. JP Morgan Chase had earlier entered a $13-billion settlement and Bank of America has since paid up almost $17 billion after pleading guilty to a series of violations. 
 
Elsewhere, Deutsche Bank, the largest German Bank, has coughed up $2.5 billion in penalties after admitting to rigging the London Inter-Bank Offered Rates (LIBOR). In the US, five big banks have paid up $5.6 billion after pleading guilty to criminal charges for manipulating the foreign currency markets. These include Barclays, UBS, Royal Bank of Scotland, Citigroup and JP Morgan Chase. 
 
Is our government naïve enough to believe that non-transparent PNs are only being used as a business necessity by large portfolio investors? Or are our political leaders continuing to protect the super-rich who are behind the round-tripping of funds through the capital market? 
 
According to Prof Vaidyanathan, unaccounted Indian money abroad is anywhere between $500 billion to $1.5 trillion. This is not going to come back, if the government dithers over uniform applicability and strict enforcement of the black money legislation.
 
(Sucheta Dalal is the managing editor of Moneylife. She was awarded the Padma Shri in 2006 for her outstanding contribution to journalism. She can be reached at [email protected])
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    COMMENTS

    LALIT SHAH

    4 years ago

    Face less so called FII is oxygen of Indian Stock Market. If band crash bigger than 2008 will there.
    This govt.is other side of same coin.
    A chaiwala got chance to enjoy world tour of 190 country's where before no body gone.and live like a Sultan a hind.
    So many durbari like vanky soughting ba mulaija hoshiyar " Savdhan taqdire hind /shehnshahe ea hind modiji padhar rahe hey / mahamaga (shushma) tasriff la rahi hey.
    BAHOT khub murkh banaya Hindustan ke hinduo KO humderd hone KA natak karke
    Wah MODI Sarkar wah

    Ankur Bhatnagar

    4 years ago

    Whichever issue one picks up, one will invariably reach corruption as its root cause.

    "Is our government naïve enough to believe that non-transparent PNs are only being used as a business necessity by large portfolio investors? Or are our political leaders continuing to protect the super-rich who are behind the round-tripping of funds through the capital market?"

    My guess is that our government is not naive. (How do you type that i with two dots?)

    REPLY

    Kalpesh Shah

    In Reply to Ankur Bhatnagar 4 years ago

    I think "naive" is fine as English doesnt have i with 2 dots. :)

    Krishnan

    4 years ago

    I recall the former learned Governor of RBI passionately demanded withdrawal of P Notes. His demand fell on deaf years. I hope Modi will take courage to dismantle the P Note regime overruling the FM, SEBI and others.

    mathai

    4 years ago

    the most outstanding failure of modi govt is in the black money case. (that modi govt pulled off many scintillating victories is a reassuring fact.) first it was the 90 days target to bring back all that is black . now this face saving legislation.( which is draconian is another funny twist.)

    the unbroken support to rigging of the share market thru what is called PN . and the struggle to justify its continued use.

    bearable till the share market bubble bursts tomorrow which is any day from today. it is better to keep an excuse ready for that day. to cover up the dismal regulatory failure , if not intentional manipulation, of the stock market

    Vishal Modi

    4 years ago

    When do domestic tax payers get some dignity and fair treatment vis a vis foreigners from our babus?

    RH_9669

    4 years ago

    India's rulers have always made laws with loop holes for the benefit of themselves, their cronies, and the "permanent" or tenured Kleptocrats. Nehru said it best in the Constituent Assembly to justify inequality under law, exceptions to the rule of law and the "Many Nations Theory": "Show me the person and I shall show you the law". It would be misleading to say that double standards or hypocrisy is the leit motif of the Indian Republic. This is but a means to an end. The application of the nation's resources to the personal pelf, pomp, pleasure, perversions and perpetuation of the Politician-Bureaucrat-Police-Judiciary-Crony-Preferred Caste/Tribe/Religion. If one reads the fine print of India's Constitution and laws, India, where even the right to contest elections is gerrymandered by law, is not a democracy, a sovereign state, a secular state or even a state that values equity, justice and human life.

    REPLY

    webkitendfullscreen

    In Reply to RH_9669 4 years ago

    You want to curb black money? Just curb the stamp duty to half of what it is. Black money will be curbed to a large extent. Land reforms will be the way to curb this menace. You can't stop hawala to private banking accounts in Switzerland or Singapore. Cash deposits ban in these countries will not happen because of Indian black money problems.

    webkitendfullscreen

    4 years ago

    P Notes are the only legitimate way for white people and Chinese investors to invest. We can buy shares in Apple. Can Americans buy shares in Hindustan Lever? P Notes are omnibus accounts which allow investors to bypass the draconian KYC regulation in India. You can ban P Notes, no problem. Atleast correct the problem of the ban on foreign individuals and corporations investing directly into the stock market. If you ban P notes the FII shareholding of corporations will vanish overnight. If that is what you wish then you should. Furthermore this is an ass backwards concept of tackling black money. Black money is actively created through real estate where the stamp duty is deliberately kept high and a ready reckoned suggested rate is published by the government. That ready reckoner is a official black money guide published by the Government. The black money menace should be tackled at the creation level, not when it has been whitewashed and invested through the financial system. If India's approached on black money tackling worked, the Americans would create P notes as well and ban foreigners from investing directly.


    Naresh Nayak
    Melbourne, Australia

    Suketu Shah

    4 years ago

    Great article.This is why India needs Dr Swamy more than ever involved at the top in finance ministry.He understands India economics inside out and most importantly has honest intentions towards the country.

    Deepak B Sholapurkar

    4 years ago

    indian Blank money is not in swissbanks but its in Indian stock market and in indian real estate. Just bank PNotes and see how much market corrects

    SEBI impounds Rs14.7 crore from 16, including Sharekhan in a front-running scam
    SEBI has asked these 15 persons or entities to provide, within seven days of this order, a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares or securities
     
    Market regulator Securities and Exchange Board of India (SEBI) has ordered impounding of Rs14.70 crore as unlawful gains from 16 entities, including domestic retail brokerage Sharekhan Ltd for front-running activities. Just few days back, BNP Paribas SA announced that it is buying 100% stake in Sharekhan for an undisclosed sum.
     
    In a 42-page order, Prashant Saran, Whole Time Member of SEBI, directed to "Impound unlawful gains of Rs13.54 crore (alleged gain of Rs8.42 crore + interest of Rs5.12 crore) jointly and severally from Manish Chaturvedi, Laxmi Chaturvedi, Manohar Chaturvedi, Viraj Mercantile Pvt Ltd, Josh Trading Pvt Ltd, Abhinandan Ranka, Pinky Auto Finance Ltd, E Ally Consulting India Pvt Ltd, Sandeep Maloo, Shree Jaisal Electronics and Industries Ltd, Neeta Maloo and Bhavesh Gadhavi. 
     
    “Impound unlawful gains of Rs65.15 lakh (alleged gain of Rs40.3 lakh + interest of Rs24.87 lakh) from Madhu Chanda, Anandilal Chanda and Anandilal Chanda HUF. From Sharekhan, the SEBI directed to impound unlawful gains of Rs50.93 lakh (alleged gain of Rs30.83 lakh + interest of Rs20.10 lakh), " the order says.
     
    Front running refers to a market activity wherein the broker buys or sells shares or takes a similar position in the stocks ahead of large orders given by his institutional clients. 
     
    According to SEBI, the alleged gains were made between March 2009 and March 2011, and it levied an interest of 12% per annum from the date on which such profits were earned.
     
     
    The SEBI order says, "Considering that the front-runners and the entities involved in the case are connected to each other directly or indirectly and collaborated with each other in engaging in the unfair practice of front-running and thereby deriving undue profits through their trades, it is pertinent to make these 12 persons or entities jointly and severally, liable for deriving undue profits from such alleged fraudulent and unfair conduct and trades. As discussed above, Madhu Chanda has used/passed information of the orders placed by clients of Sharekhan. The two dealers (Madhu and Anandilal) of Sharekhan are husband and wife and therefore the unfair gains made by them, by collaborating with each other, in the accounts of Anandilal and Chanda HUF by front-running the clients of Sharekhan also needs to be impounded jointly and severally from Madhu, Anandilal and Chanda HUF. Further, Sharekhan Ltd is also liable for the undue gains made in its Proprietary Account through trades carried out through dealer, Anandilal."
     
    In addition, Sharekhan is asked to deposit Rs50.94 lakh in an escrow account within seven days.
     
    SEBI has asked these 15 persons or entities to provide, within seven days of this order, a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares or securities, if held in physical form and details of companies in which they hold substantial or controlling interest.
     
    According to SEBI release, Sharekhan and other front running entities used orders from the Sterling Group from South India for their operations. Sterling Group consists Abhi Ambi Financial Services Ltd (Abhi Ambi), Sterling Futures & Holidays Ltd (Sterling Futures), Ratha Infrastructure Pvt Ltd (Ratha), Baghmar Finlease Ltd (Baghmar), Shanmuga Home Makers Pvt Ltd, Siva Trade Consultancy Pvt Ltd, Saravana Enterprises (Saravana), Shanmuga Real Estate & Promoters Pvt Ltd, VS Net Ltd and Siva Projects Engineering & Enterprises Ltd.
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    SEBI warns investors on fraudulent fund collections; issues list of 193 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 193 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 193 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 193 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. In 2015 itself, SEBI said it has passed orders against 123 companies in such cases.
     
    The companies against which action has been taken include Togo Retail Marketing, Mumbai-based Shah Group of Builders, Aspen Nirman India, Megasys Healthcare, Siyaram Development and Construction, Matribhumi Projects and Goldmine Agro. Majority of these companies are from West Bengal followed by Madhya Pradesh. 
     
    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…

     

    Order passed in respect of Deemed public issues  U/s 67 of the Companies Act, 1956

     
    Sr. No. Name of the Entity Location of the Entity Date of Order
    1 Kunnamkulam Paper Mills Ltd Kerala 10.04.2003
    2 Sahara India Real Estate Corporation Ltd Uttar Pradesh 23.06.2011
    3 Sahara Housing Investment Corporation Ltd Maharashtra 23.06.2011
    4 SGI Research & Analysis Ltd Delhi 11.01.2013
    5 Basil International Ltd Delhi 06.02.2015
    6 Rhine & Raavi Credits and Holdings Limited Delhi 27.03.2015
    7 Alchemist Holding Limited Delhi 20.09.2013
    8 Vibgyor Allied Infrastructure Ltd West Bengal 20.02.2014
    9 Kolkata Weir Industries Ltd West Bengal 30.04.2014
    10 Ramel Industries Ltd West Bengal 15.05.2014
    11 Aspen Projects India Limited West Bengal 05.06.2014
    12 Golden Life Agro India Limited West Bengal 07.01.2015
    13 Greater Kolkata Infrastructure Limited West Bengal 06.02.2015
    14 GSHP Realtech Limited West Bengal 18.03.2015
    15 Promotech Infratech Limited West Bengal 05.03.2015
    16 Mega Mould India Limited West Bengal 05.03.2015
    17 Seashore Securities Ltd Odisha 23.07.2014
    18 Icore-E-services Ltd West Bengal 25.07.2014
    19 PAFL Industries Limited West Bengal 31.07.2014
    20 Sunplant Constructions Limited West Bengal 24.07.2014
    21 Ramel Real Estate Infrastructure Ltd West Bengal 06.08.2014
    22 MBK Business Development (India) Limited West Bengal 07.08.2014
    23 GreenTouch Projects Limited West Bengal 07.08.2014
    24 Falkon Industries India Limited West Bengal 08.08.2014
    25 Ravi Kiran Realty India Limited West Bengal 08.08.2014
    26 Multi-Purpose Bios India Limited West Bengal 14.08.2014
    27 Progress Cultivation Limited West Bengal 14.08.2014
    28 Pinnacle Ventures India Limited West Bengal 24.07.2015
    29 Magnox Indraprojects Limited West Bengal 22.08.2014
    30 Amrit Projects (N.E) Limited Assam 22.08.2014
    31 Bharat Krishi Samridhi Industries Limited West Bengal 05.09.2014
    32 Amrit Projects Limited West Bengal 09.09.2014
    33 Rising Agrotech Limited West Bengal 09.09.2014
    34 Purusattam Infotech Industries Limited West Bengal 09.09.2014
    35 SEBA Real Estate Limited Assam 10.09.2014
    36 Torsa Agro Projects Limited West Bengal 12.09.2014
    37 Wierd Industries Limited West Bengal 15.09.2014
    38 Weird Infrastructure Corporation Limited Uttar Pradesh 24.09.2014
    39 Life Care Real Developers Limited New Delhi 29.09.2014
    40 Vamshi Chemicals Limited New Delhi 30.10.2014
    41 Life Care Infra Tech Limited Uttar Pradesh 03.11.2014
    42 Regenix Drugs Limited Tamilnadu 10.11.2014
    43 Real Tulip India Limited Madhya Pradesh 11.11.2014
    44 Newland Agro Industries Limited West Bengal 20.11.2014
    45 Sunheaven Agro India Limited West Bengal 20.11.2014
    46 Micro Leasing and funding Ltd Bhubaneshwar 21.11.2014
    47 Angel Rural Development Limited Madhya Pradesh 21.11.2014
    48 Prism Infracon Limited West Bengal 24.11.2014
    49 NVD Solar Limited West Bengal 27.11.2014
    50 Sampriti Projects Limited West Bengal 28.11.2014
    51 Vista Management Services Limited Odisha 01.12.2014
    52 Kolkata Aryan Food Industries Limited West Bengal 01.12.2014
    53 Federal Agro Commercial Limited Odisha 01.12.2014
    54 Waris Agrotech (India) Limited West Bengal 01.12.2014
    55 Swarnabhumi Developers Limited West Bengal 02.12.2014
    56 Bharatiya Real Estate Development Ltd West Bengal 02.12.2014
    57 SLB Invest (India) Limited Odisha 03.12.2014
    58 Orchid Cultivation Projects India Limited West Bengal 03.12.2014
    59 Aditya Global Industries Limited West Bengal 03.12.2014
    60 Greenworld Agro Industries Limited (earlier known as Bangadisha Projects Limited) West Bengal 04.12.2014
    61 Mass Infra Realty Limited West Bengal 04.12.2014
    62 Alchemist Capital Limited (formerly known as Toubro Holdings Limited) Chandigarh 08.12.2014
    63 Midas Touch Assets & Securities Limited Odisha 09.12.2014
    64 Yash Dream Real Estate Ltd. Chhattisgarh 16.12.2014
    65 Adorable Agrotech Ltd. West Bengal 15.12.2014
    66 Mondal Constructions Company Limited West Bengal 15.12.2014
    67 Option One Industries Ltd Madhya Pradesh 16.12.2014
    68 Just Reliable Projects India Ltd West Bengal 16.12.2014
    69 Vaibhav Pariwar India Projects Limited West Bengal 29.12.2014
    70 Suraksha Agrotech Industries Limited West Bengal 29.12.2014
    71 Silicon Projects Limited West Bengal 06.01.2015
    72 Infinity Realcon Limited West Bengal 07.01.2015
    73 Dynamic Asset Management Limited Odisha 09.01.2015
    74 Micro Finance Ltd Odisha 14.01.2015
    75 MPA Agro - Animals Projects Ltd West Bengal 21.01.2015
    76 Megasys Medi Life Ltd West Bengal 28.01.2015
    77 Chakra Infrastructure Limited West Bengal 29.01.2015
    78 Krutibibha Corporation Limited Odisha 29.01.2015
    79 Vikdas Industries Ltd. West Bengal 29.01.2015
    80 Prayas Projects India Limited West Bengal 30.01.2015
    81 Amazon Agro Products Limited West Bengal 30.01.2015
    82 Sarada Pleasure and Adventure Limited Bihar 02.02.2015
    83 Hooghly Agrotech Limited West Bengal 11.02.2015
    84 Sukhchain Hire Purchase Limited Madhya Pradesh 11.02.2015
    85 Adamant Infrastructure Ltd Madhya Pradesh 11.02.2015
    86 Suvidha Land Developers India Ltd Madhya Pradesh 12.02.2015
    87 ATM Agro Industries India Limited West Bengal 12.02.2015
    88 ATM Agro Projects India Limited West Bengal 12.02.2015
    89 AM Fund Managers Limited Odisha 20.02.2015
    90 Rightmax Technotrade International Limited Karnataka 20.02.2015
    91 GBC Enterprise Limited West Bengal 20.02.2015
    92 Nirmal Infrahome Corporation Ltd Chhattisgarh 20.02.2015
    93 Dreamland Industries Ltd West Bengal 24.02.2015
    94 Tribhuvan Agro projects Ltd West Bengal 24.02.2015
    95 Target People Social Security Scheme Micro Finance Ltd Tamil Nadu 04.03.2015
    96 Fishermen Development Micro Finance Ltd. Tamil Nadu 04.03.2015
    97 ERIL Mutual Benefit India Limited Jharkhand 04.03.2015
    98 Asoka Life Science Limited West Bengal 11.03.2015
    99 Golden Heaven Agro Project India Limited West Bengal 12.03.2015
    100 Maxbe Green Provision Limited West Bengal 13.03.2015
    101 Jeevan Suraksha Real Estate Limited West Bengal 13.03.2015
    102 Real Sunshine Corp Limited and its Directors Madhya Pradesh 13.03.2015
    103 Rista Fisheries & Infrastructure Limited West Bengal 16.03.2015
    104 Cell Industries Limited West Bengal 17.03.2015
    105 Astha Green Energy Ventures India Ltd. Telangana 17.03.2015
    106 Sunshine Hi-Tech Infracon Ltd. Gujarat 17.03.2015
    107 URO Hygeinic Goods Limited West Bengal 19.03.2015
    108 URO Infotech Limited West Bengal 19.03.2015
    109 URO Life care Limited West Bengal 19.03.2015
    110 URO Walkers Limited West Bengal 19.03.2015
    111 URO Infra Realty India Limited West Bengal 19.03.2015
    112 Adarsh Wealth Ventures Limited Odisha 19.03.2015
    113 Astha Techno Realty India Limited West Bengal 19.03.2015
    114 MARS Agrofarm Developers Limited West Bengal 19.03.2015
    115 Goldmine Food Products Limited West Bengal 19.03.2015
    116 SCL Steel Corporation Limited Madhya Pradesh 19.03.2015
    117 Infocare Infra Limited West Bengal 19.03.2015
    118 Real Agri Industries & Services Limited West Bengal 20.03.2015
    119 Hum Projects Limited West Bengal 20.03.2015
    120 Real Vision International Limited Odisha 20.03.2015
    121 Tresty Securities Ltd Odisha 20.03.2015
    122 Everlight Realcon Infrastructure Ltd Jharkhand 20.03.2015
    123 Shivalik Cotex Ltd Delhi 27.03.2015
    124 Green India Infra Projects Odisha 27.03.2015
    125 Equinox Infratech Limited Madhya Pradesh 30.03.2015
    126 Idol India Infrastructures Limited Madhya Pradesh 19.05.2014
    127 Morningstar Ventures Limited West Bengal 30.03.2015
    128 Affiance Industries Limited West Bengal 31.03.2015
    129 I-Nova Solutions Limited West Bengal 31.03.2015
    130 Polaris Agro Industries Limited West Bengal 01.04.2015
    131 Sunshine Infrabuild Corporation Ltd Delhi 01.04.2015
    132 Mangalam Agro Products Limited West Bengal 06.04.2015
    133 Pious Agro Industries Limited West Bengal 17.04.2015
    134 Fantasy Infraventure & Agrimart Limited Uttar Pradesh 30.03.2015
    135 Angela Agrotech Limited West Bengal 21.04.2015
    136 Mount Vision Industries India Ltd Madhya Pradesh 22.04.2015
    137 Sankalp Projects Limited West Bengal 24.04.2015
    138 Nixcil Pharmaceuticals Specialities Limited Uttar Pradesh 24.04.2015
    139 Phenix Properties Limited Assam 24.04.2015
    140 Sunplant Forgings Limited West Bengal 29.04.2015
    141 Great Overseas Commodeal Limited West Bengal 06.05.2015
    142 Bishal Horticulture & Animal Projects Limited West Bengal 06.05.2015
    143 Bishal Distillers Limited West Bengal 06.05.2015
    144 Bishal Agri–Bio Industries Limited West Bengal 06.05.2015
    145 Bishal Abasan India Limited West Bengal 06.05.2015
    146 Suraksha Industries India Limited Bihar 07.05.2015
    147 Nava Diganta Capital Services Limited Odisha 07.05.2015
    148 Waris Healthcare Limited West Bengal 07.05.2015
    149 Subha Commercial Services Limited Tripura 08.05.2015
    150 MRS Agrotech India Limited Madhya Pradesh 08.05.2015
    151 RBX Land Developers India Limited Madhya Pradesh 12.05.2015
    152 Gulshan Nirman India Limited Chhattisgarh 12.05.2015
    153 Wasankar Wealth Management Limited Maharashtra 18.05.2015
    154 Verinder Finance Ltd Jammu and Kashmir 20.5.2015
    155 Amazan Capital Limited West Bengal 25.05.2015/ 29.05.2015
    156 Dolphin Universal Rural Development Limited Madhya Pradesh 27.05.2015
    157 Cemendia Infrastructures Limited Madhya Pradesh 29.05.2015
    158 Sun-Plant Business Limited West Bengal 03.06.2015
    159 Neesa Technologies Limited Gujarat 03.06.2015
    160 ASSR Agro India Limited West Bengal 04.06.2015
    161 STPL Infrastructures Limited Madhya Pradesh 05.06.2015
    162 AVM Real Estate & Allied Limited Chhattisgarh 05.06.2015
    163 Polaris Realtors IndiaLimited Madhya Pradesh 15.06.2015
    164 Bhabiswajyoti Infrastructure India Limited Madhya Pradesh 17.06.2015
    166 Gitanjali Udyog Limited West Bengal 17.06.2015
    167 Cell Realcon Corporation Limited Madhya Pradesh 17.06.2015
    168 Eris Energy Limited Madhya Pradesh 18.06.2015
    170 Greenbang Agro Limited West Bengal 18.06.2015
    171 Goldmine Agro Limited West Bengal 19.06.2015
    172 Goldmine Industries Limited Madhya Pradesh 22.06.2015
    173 Omisha Agri Industries (India) Limited Madhya Pradesh 22.06.2015
    174 Waris Finance and Investment Limited West Bengal 23.06.2015
    175 Jugantor Realty Limited West Bengal 23.06.2015
    176 Matribhumi Projects (I) Limited West Bengal 23.06.2015
    177 Annex Infrastructure India Limited West Bengal 24.06.2015
    178 Active Rural Development India Limited Madhya Pradesh 25.06.2015
    179 United Medicine and Surgical Industries Limited West Bengal 25.06.2015
    180 Angel Allied India Limited Punjab 29.06.2015
    181 Life Care Infrastructures India Limited Madhya Pradesh 29.06.2015
    182 Vishwamitra International Infra Ltd Madhya Pradesh 30.06.2015
    183 Shah Group Builders Ltd Maharashtra 01.07.2015
    184 Megasys Healthcare Limited Madhya Pradesh 02.07.2015
    185 Aspen Nirman India Limited Madhya Pradesh 15.07.2015
    186 Siyaram Development and Construction Limited Karnataka 17.07.2015
    187 Swasata Steel Industries Limited West Bengal 17.07.2015
    188 Madurai Rural Development Transformation India Limited Tamilnadu 17.07.2015
    190 Madurai Rural Development Benefit Fund (India) Limited   Tamilnadu 17.07.2015
    191 Togo Retail Marketing Limited Delhi 22.07.2015
    192 Pailan Park Development Authority Limited West Bengal 27.07.2015
    193 Pailan Agro India Ltd Jharkhand 27.07.2015

     

    SEBI said that some unlisted companies are luring retail investors by issuing  securities  including non-convertible and convertible debentures, non-convertible and convertible preference  shares/ equity shares in the garb of private placement,  without  complying with the provisions of Companies Act, 1956 read  with  the Companies Act, 2013, SEBI (Issue and Listing of  Debt Securities), Regulations, 2008, SEBI (Issue and Listing of  Non-Convertible  Redeemable Preference Shares), Regulations, 2013 and SEBI (Issue of capital and Disclosure Requirements) Regulations, 2009. Any offer of securities made to 50 or more persons has to be construed as a “Public Offer” under the provisions of Companies Act, 1956. 
     
    Under Companies Act, 2013, “Private Placement” shall be made only to such persons whose names are recorded by the company prior to the invitation to subscribe.  Further, in case of private placements, the company shall not release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an offer, emphasises the release from SEBI.
     
  • User

    COMMENTS

    Manoj Kumar Chand

    3 months ago

    Rhine & Raavi Credits and Holdings Limited
    We have invested the money in this company after very hardwork to get some benefits also they claimed to return the money in 48 months but despite of getting benefits we didn't got our invested money also. After contacting to the companies people they are saying we won't give you a single money and no one can do anything no court can do anything and not even SEBI or Modi's government.
    Also our government said that after winning in the election again they will help us to recover the money now where is he.
    Is he also involved with them.
    NCD is purchased in the name of Dhananjay Chandra.
    I want to know by when I will get my money??

    Ashley Ray

    8 months ago

    I lost over 100k in an investment trading company last year; i was down because the company refused to let me make withdrawals and kept asking for more money.... My friend in the military introduced me to a private investigator; James Morrison with the email address [email protected] and he's being really helpful, he's made a successful recovery of 70% of my investment in one month. I am so happy and grateful

    REPLY

    Manoj Kumar Chand

    In Reply to Ashley Ray 3 months ago

    Hey want to know that after contacting to this email id will they would be helpful now also
    ??

    shetty ganesh

    9 months ago

    Sir 9,00,000 investment in micro finance and micro leasing fund it's mani branch bhuneshwar odshi the branch chembur Mumbai also public 50,00,000 crore invest Mumbai investtor cheated please help me .

    shetty ganesh

    9 months ago

    Sir 9,00,000 investment in micro finance and micro leasing fund it's mani branch bhuneshwar odshi the branch chembur Mumbai also public 50,00,000 crore invest Mumbai investtor cheated please help me .

    bishal korha

    11 months ago

    I am very much worried about my hard earned money Rs. 1,80,000/- which is invested in Weird Infrastructures Corp. Limited. I think the company has cheated the common men like me. How can I get back my hard earned with appropriate interest. Is SEBI capable enough to help us.

    BIPIN SHARMA

    2 years ago

    मै बिपिन कुमार शर्मा MATRIBHUMI MANUFACTURING & MARKETING (I) LTD , MATRIBHUMI MUTUAL BENEFIT LTD ,MATRIBHUMI WELFARE SOCIETY के सम्बन्ध में सरकारी बिभाग को जानकारी देना चाहता हूँ की ये नॉन बैंकिंग कंपनी एक प्लानिंग के तहत बनाया गया था और निबेसकों से 21 करोड़ गबन करके बैठी है लकिन डर से निबेस्कों ने केसनहीं किया कुओंकी ये कंपनी वाले पैसे के दम पर सबको खरीद चुके है क्या करूँ मेरा 2 LAKH रुपया है

    Om Prakash Patidar

    2 years ago

    Sir apki is list me BNP India limited company Ka naam hi Nahi ha
    Jisne lakho garibo Ka paisa 5 Saal me 2 guna Karne Ka lalach Dakar company sabhi niveshako Ka paisa lakar bhag gayi ha is company ke khilaf BHI karyavahi kare or niveshako Ka paisa dilvaye

    Deepankar

    2 years ago

    There are many Public issues that are built on inflated figures. One such is Acme , gurgaon company. It is coming with public IPO of 2200 Crores. It has lot of inflated figures, Old damaged stock of more than 200 Cr not written off, Bad debts not written off, Fake Inter company sales, Stay Away from this IPO - go deep in disclaimers, you will know

    Dipankar

    2 years ago

    I have Invested Rs.450000 in Alchemist Holdings for 16 years term. Now I found branches and offices in West Bengal. I have invested in the year of 2008. Now what should I do it.

    DHRUBAJYOTI BORAH

    2 years ago

    I was the agent from Nagaland of sun plant business ltd

    DHRUBAJYOTI BORAH

    2 years ago

    Take step as soon as possible so that we get back our money early. I was the agent from Nagaland getting so much pressure from my customers.

    Lawyer Prabhat

    2 years ago

    File a criminal case against against company and also file case for refund of money:regards-Prabhat yadav advocate high court of mp 9300831794/8770168425

    Sanjeev Gupta

    3 years ago

    Adarsh Credit Co-operative Society is Genuine or Fraud

    subhankar Das

    3 years ago

    sir,
    I had invested Infinity Realcon Limited amount from taking loan and debt in the prospect of getting some profit but due to fraud i lost my all hard earned money, i am in great difficulty and my condition is suicidal, i don't know what to do and where to go to get back my money and live normal life. I am very upset these days.please help me and save me sir.


    regards
    Subhankar Das.
    Delhi
    Mob 9999279459
    [email protected]

    REPLY

    Lawyer Prabhat

    In Reply to subhankar Das 2 years ago

    Take legal action against company and be positive n call me on 9300831794/8770168425

    halim akhtar

    3 years ago

    sir,
    I had invested a huge amount from taking loan and debt in the prospect of getting some profit but due to fraud i lost my all hard earned money, i am in great difficulty and my condition is suicidal, i don't know what to do and where to go to get back my money and live normal life. I am very upset these days.
    I request you to kindly take some concrete action as i had lodged my complain in the "Complain Board" but proved to be of no use as no action taken by them til yet.
    please help me and save me sir and obliged.

    regards
    Halim Akhtar
    P.O Chaibasa, Jharkhand
    Mob 9934076051
    [email protected]

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