A preliminary probe by the Securities and Exchange Board of India (Sebi) has found that Peers Allied was running a 'collective investment scheme' (CIS) without requisite approvals and registration with the market regulator.
Sebi said that the scheme offered by Peers Allied in the name of purchase and development of plot of land "is nothing but a smokescreen for its fund mobilising activity".
The watchdog observed that Peers Allied had mobilised Rs 14.21 crore from about 4,500 investors as on March 31, 2012, under its schemes.
Noting that steps had to be taken to ensure that no investors is defrauded through fraudulent schemes, Sebi in an order today directed Peers Allied and its 9 directors "not to collect any money from investors from its existing scheme or to launch any new schemes".
Besides, Sebi has asked the entities to "immediately submit" the full inventory of the assets owned by Peers out of the amounts collected from investors.
It has also asked the company and its directors not to dispose of any properties or assets from the schemes as well as not to divert any of the investor money collected.
Additionally, they would have to submit all details sought by Sebi regarding the company's schemes with the market regulator within 15 days.
Sebi had carried out probe against Peers Allied after receiving information regarding certain investment schemes floated by the company.
The regulator noted that Peers Allied had offered schemes for the purchase and development/maintenance of land for growing agricultural produce through its brochures circulated in public.
Among other, Sebi noted that scheme by Peers Allied was in nature of CIS as the "contributions or investments received from individual customers/investors are pooled and utilised solely for the purpose of the scheme offered by Peers".