Sebi cautions investors against barred entities

The capital market regulator has barred 63 entities in last four years

Indian capital market watchdog the Securities and Exchange Board of India (Sebi) has cautioned investors not to invest in schemes offered by those entities that have been barred from raising money.

The advisory comes after the regulator observed that certain barred entities are still collecting money from investors, defying regulator ban.

Sebi has barred 63 entities in the last four years from carrying on their activities of fund raising.

In a statement, Sebi, said, "It has been observed that certain entities collect / mobilize money under existing / new schemes even after Sebi has directed such entities not to collect any further money, not to launch any new schemes, etc. These companies / entities without obtaining registration are illegally collecting / mobilising money, from investors by making false promises, assuring unrealistic return."

As part of interim directions, the regulator has directed the entities and its directors to stop collecting further money under existing or new schemes, not to launch any new scheme or float any new companies or firm to raise fresh money, not to divert or alienate any assets or money collected.

The regulator said barring GIFT Collective Investment Management no other entity is registered with Sebi as collective investment scheme (CIS).