Cash cow goats: Sebi smells foul play
Claiming to have large goat-rearing farms in northern parts of the country, Beetal Livestock & Farm (P) Ltd had solicited investments from the public with a promise of 2 per cent monthly returns, and doubling of money in 3-4 years. Suspecting an unregistered Collective Investment Scheme (CIS) being run to milk investors, the Securities and Exchange Board of India (Sebi) served show-cause notices to the company and its four directors, but were returned undelivered. Consequently, Sebi has now issued a public notice asking the company and its four directors to collect the show-cause notices by November 10, failing which the regulator has warned to begin ex-parte proceedings against them.
Sebi regulates CIS, which involves pooling in of money from multiple investors for a specific objective.
The company, which was not registered as CIS entity with Sebi, had solicited investments in the goat-rearing business through newspaper advertisements a couple of years ago. The business model involved paying a few thousands of
rupees to become owner of a goat, to be reared by Beetal.
Investors were told that as each goat gives birth to four kids a year, the new goats would be sold to other investors – giving up to four-fold appreciation in the first year itself.The investments could give manifold returns in subsequent years, said Beetal, with each of the four new goats
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