CIS case: Sebi bars RBN Infra from raising funds from public

Capital markets regulator Sebi today prohibited RBN Infrastructure from raising fresh capital from the public with immediate effect.
Besides, it directed the company not to launch any new scheme.
The Securities and Exchange Board of India (Sebi) found that RBN Infrastructure was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was inviting investments from the general public through its 'development and maintenance of land' scheme.
In an order, Sebi said that the "scheme offered by RBN Infrastructure in the name of real estate business is nothing but a smokescreen for its fund mobilising activity with a resultant promise of returns", which prima facie satisfies conditions of CIS.

Accordingly, Sebi has directed the company and its directors -- Ranveer Singh Baghel, Ram Niwas Pal, Ashok Kumar Pal, Ram Rup Baghel, Anil Kumar-- "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 bank account of the company. Theyhave to furnish all details of its investors, among other information, to Sebi.

These directions would take effect "immediately and shall be in force until further orders.