Sebi warns investors against barred entities

Regulator names 235 firms, asks investors not to be lured by their schemes

The Securities and Exchange Board of India (Sebi) on Monday warned unlisted companies and their directors who fraudulently raised money and asked investors not to be lured by their schemes.

The market regulator has listed out 235 unlisted companies that have lured retail investors by issuing securities such as non-convertible debentures/non-convertible preference shares in the garb of private placement. Orders against these firms were passed between April 2003 and May 2016.

“Companies are cautioned not to issue securities to public without complying with provisions of law. Failing which Sebi will be constraint to take stringent action against such companies and their directors,” Sebi noted.

The companies against which action has been taken include Jeevan Suraksha Real Estate, Roofers Infra Projects, Shankalp Food and Beverages, Silicon Projects, Pious Agro Industries, Ravi Kiran Realty, Angela Agrotech, Amrit Projects, MARS Agrofarm Developers, and Golden Heaven Agro Project India.

In another note, Sebi also warned investors against collective investment schemes (CIS) of entities barred by the market regulator from raising money.  The regulator passed orders against 100 entities and its directors carrying on unregistered CIS.

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

Apart from Gift Collective Investment Management Company Limited, no other entity is registered with Sebi. Hence, investors are advised to do due diligence before investing in such schemes, said Sebi in its note.