CIS case: Sebi bars IPN Developers from raising public money

Taking action against illegal investment schemes in the garb of selling plots, markets regulator Sebi has barred IPN Developers and Allied from raising fresh capital from the public, with immediate effect.
The order comes following a complaint received by Sebi against IPN Developers alleging illegal mobilisation of funds by the company.
Securities and Exchange Board of India (Sebi) found that IPN Developers was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was inviting investments from the general public through its 'purchase/sale and development of land' scheme.
In yesterday's order , Sebi said,"IPN Developers was collecting money from public at large in the name selling of plots under its scheme...The scheme offered by IPN Developers with a resultant promise of returns when considered in light of peculiar characteristics and features of such scheme," prima facie satisfies conditions of CIS."

Accordingly, Sebi has directed the company and its directors --Nageshwar Panchal, Dilip Devda, Shankar Lal Yadav, Hari Singh,Rajesh Panchal and Dashrath Singh Panwar--"not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new scheme".

They also have "to immediately submit the full inventory of the assets, including land obtained through money raised".
Besides, the company and its directors have been barred from disposing of or alienate any of the properties or assets owned or acquired through the money raised.
Further, they cannot divert any funds raised from public at large which are kept in the bank account of the company.

They have to furnish all details of the investors, among other information, to Sebi.
This order "shall come into force with immediate effect and shall continue to be in force till further directions".