Accordingly, this is the minimum amount illegally raised by the company and, hence, is required to be repaid to the investors, Sebi said while imposing a ban.
Regulator Sebi Monday barred Sai Prakash Properties Development and its seven directors from the securities market for illegal mobilisation of funds from public and directed them to refund the money. Among the seven directors, Pushpendra Singh Baghel, Pushpanjali Singh Baghel, Ranvajay Pratap Singh Baghel, Mragendra Singh Baghel, Dheerendra Krishan Pratap, Shahendra Singh Baghel have been barred from the markets for seven years, while Sandeep Shankar has been banned for one year.
Moreover, Sai Prakash Properties Development has also been barred from the markets for seven years. The regulator in an interim order during December 2014 had found the company and its directors prima facie of indulging in fund mobilisation activity without complying public issue norms. The interim order had directed the entities to refrain from collecting money from its existing scheme and not to dispose of properties or assets, among others.
In a fresh order, the regulator said the “activities of the noticees (Sai Prakash, directors) constitute a collective investment scheme… and the same has been carried out by the noticees without seeking a registration from Sebi thereby contravening… CIS Regulations”. The regulator further added that after passing of the interim order and upon investigation by Sebi and based on a bank statement analysis, it was found that the company had collected at least Rs 111.54 crore.
Accordingly, this is the minimum amount illegally raised by the company and, hence, is required to be repaid to the investors, Sebi said while imposing a ban. In a separate order, the regulator barred DGR Farms and Leisure Ltd as well as 12 directors from securities market for 4 years for running a collective investment scheme without requisite approval. Besides, the regulator asked the firm to refund Rs 13.45 crore, which was illegally mobilised by them from public.