Sebi asks directors of Zeestar Limouzines to return investors' money

Markets regulator Sebi has ordered the directors of Zeestar Limouzines to refund investors' money collected illegally and restrained them from securities market until the completion of refunds.

The regulator in an order passed in December 2015 had noted that Star Auto Cabs, a unit of Zeestar Limouzines, was collecting money from the public under an unregistered collective investment scheme and directed the firm to make refunds along with returns to its investors.

Besides, the firm was restrained from accessing the securities market for four years.

In its order passed on Wednesday, Sebi said the proceedings were also initiated against the directors of Zeestar --Reena Atal, Surendra Kumar, Deepak Kumar Goswami, Mrinal Atal and Rahul Chauhan-- since they are responsible for management of the affairs of the company and raising and utilisation of the funds.

The regulator noted that "these directors are liable, jointly and severally with the Company, to make refund of the money collected by Zeestar Limouzines to investors."
It noted that "liability of Noticees to make refund is coextensive with the liability of Zeestar Limouzines to refund to investors."