Sebi launches prosecution in 565 Ponzi cases, 1,000 others 

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New Delhi | Published: May 26, 2016 7:49:11 PM

Markets regulator Sebi has launched as many as 565 prosecution cases against those collecting public money through illegal investment schemes and over 1,000 other cases for violation of securities norms.

Market regulators, SEBI, illegal investments, Ponzi schemeMarkets regulator Sebi has launched as many as 565 prosecution cases against those collecting public money through illegal investment schemes and over 1,000 other cases for violation of securities norms.

Markets regulator Sebi has launched as many as 565 prosecution cases against those collecting public money through illegal investment schemes and over 1,000 other cases for violation of securities norms.

The entities have garnered funds through fraudulent investment schemes with promise of huge returns to investors.

Sebi has clamped down on a number of illegal collective investment schemes including on entities from Saradha, MPS, Sumangal, MPS Greenary Developers, Sai Prasad, HBN, Alchemist Infra, Maitreyi and Rose Valley groups.

Till date, the regulator has launched 565 prosecution cases for violation of CIS regulations, as per latest update available with Securities and Exchange Board of India (Sebi)

Besides, Sebi has launched prosecution in 1,071 cases including Pyramid Saimira theatre, NVD Solar, Kolkata Weir Industries and Alderbrooke Portfolio Management Services for violation of other capital market norms.

These proceedings include attachment of bank and demat accounts, attachment of movable and immovable properties and appointment of receivers for management of attached properties.

The regulator has been granted more powers, through amendments in Sebi Act, to pass attachment orders and launch recovery proceedings against fraudsters and market manipulators, including those running illegal deposit schemes and those failing to pay penalties and other dues.

A special court is also hearing several cases, filed by the regulator, which would help fast-track the prosecution and recovery proceedings against the defaulters.

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