SEBI bars JSR Dairies from running collective investment schemes-CIS. SEBI found that the company was accepting deposits by floating various schemes under the pretext of selling dairy products
Market regulator Securities and Exchange Board of India (SEBI) has barred JSR Dairies Ltd and its directors from collecting money from investors, including its existing collective investment schemes (CIS), launching any new schemes, and diverting collected funds. SEBI found that the company was accepting public deposits under its various schemes without statutory approval of SEBI.
SEBI in its investigation found that JSR Dairies is engaged in fund mobilising activity from the public, by floating or sponsoring or launching 'collective investment scheme' without obtaining a certificate of registration from SEBI.
The SEBI investigation revealed that JSR Dairies collected money from investors for purchase and allotment of calf/ghee under various subscription plans, either in installments or lump–sum payment (referred to as "JSR Scheme") one of each of the aforementioned monthly installments and lump-sum 'Payment Plans'.
Source: www.sebi.gov.in
Hence, as per SEBI Act and 11(1), 11B and 11(4) of the SEBI Act and CIS Regulations, the market regulator passed an order directing the company and its directors Rajesh Khera, Rajesh Niranjan, Lalit Kumar Arora, and Praveen Kumar not to collect any money from investors including under the existing schemes. It also asked them not to launch any new schemes, dispose of any of their properties or alienate any of the assets of the schemes, divert any funds raised from public, and give full inventory of the assets owned by the company.
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