Ban on Wisdom Agro for raising funds from public to stay: Sebi

Markets regulator Sebi today refused to lift ban on Wisdom Agro Tech India as well its directors from raising funds from public investors.
The markets watchdog, via an interim order in December 2014, had directed the firm and its directors "not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new schemes or plans or float any new companies to raise fresh money."
A Sebi probe found that Wisdom Agro had solicited crores of rupees from more than 5,000 investors in Tamil Nadu under its scheme related to sale and purchase of agricultural land without requisite certification from the markets regulator.

In an order passed today, the Securities and Exchange Board of India (Sebi) said that allowing the company and its directors to continue with the collection of money from the public/ investors is not in the interest of the investors.
"Therefore, I am of the view that the company may be allowed to execute and register sale deeds where the investors have already made the payments and prohibit the company from collecting money from the public directly or indirectly, through any mode," Sebi Whole Time Member Prashant Saran said.
Accordingly, the regulator has confirmed "the directions issued vide the interim order dated December 10, 2014 against Wisdom Agro, Anantharaman Nallaperumal, Govinda Pillai Reghukumaran, Kumaresan Vasanthakumari, Jeyashoba Thankappan Rajam and Prabhu Kannan."

The direction would continue to be in effect till further orders of Sebi.