During the probe, the regulator found that Sheen Agro was mobilizing fresh funds after filing winding up and repayment report (WRR) in October 2003, which was in non-compliance of CIS norms.
Markets regulator Sebi has imposed a fine of Rs 25 lakh on nine directors of Sheen Agro & Plantation Ltd for mobilizing fresh funds through unregistered collective investment scheme (CIS) even after filing winding up report with the markets regulator.
Angrez Singh Bhadwal, Surinder Kumar Trilokia, Naseeb Singh Pawar, Kamal Singh Bhau, Sudershan Singh Jamwal, Ajeet Lal Sharma, Kripal Singh, Yograj Singh Bhau and Tej Pal Singh are the directors on whom the fine has been imposed.
The regulator had conducted a probe in fund mobilization by Sheen Agro. During the probe, the regulator found that Sheen Agro was mobilizing fresh funds after filing winding up and repayment report (WRR) in October 2003, which was in non-compliance of CIS norms.
The nine directors are instrumental in Sheen Agro mobilizing funds even after filing winding up report with Sebi, and their actions were in contravention of the CIS Regulations, the regulator said in an order on Monday.
Mobilizing funds through an unregistered CIS is certainly a serious violation which affects interest of gullible investors at large, as there is scope of investors losing their hard earned money, the Securities and Exchange Board of India (Sebi) said.
Accordingly, the regulator levied a fine of Rs 25 lakh, to be paid jointly and severally by the directors.