Illegal CIS: Sebi bans Maitreya Plotters, directors from mkts for 4 yrs

Markets regulator Sebi Thursday banned Maitreya Plotters and Structures and two directors from the markets for at least four years and asked them to refund Rs 1,775 crore to investors in three months.

The directors are Madhusudan Satpalkar and Janardan Arvind Parulekar, as per Sebi order.

Besides, the regulator noted that several proceedings have been initiated against the company by different entities and Nasik district court has allowed for constitution of a committee for payment of the money to the investors.

The Sebi in year 2013 had prime-facie found the schemes for booking or purchase of plot launched by the firm from 2009 to 2013 were deemed to be collective investment scheme (CIS).

As per the order, the company has stated to receive advance from the investors to the extent of Rs 1,775 crore.

Accordingly, Sebi had barred entities from further collecting money and asked them not to dispose of assets acquired by them through the fund-raise.

The interim orders were later confirmed in the September 2014.

In a fresh order, the regulator said the entities have not obtained any certificate of registration from Sebi under the CIS regulations for its fund mobilising activity from the public under various schemes offered by it and thereby contravened CIS norms.

Following which Securities and Exchange Board Of India (Sebi) barred them from securities markets for four years from the date of completion of refund.

However, the directions shall be subject to the permission of the district court or the committee constituted under the order of the District Court of Nasik, the regulator said.