Sebi asks Green Ray to refund investor money in 3 months

Continuing its clamp down on illegal investment activities, Sebi has asked Green Ray International to immediately wind down its scheme that solicited money for buying and selling gold as well as silver coins.
Besides directing the company to repay money to investors "within three months", Sebi has barred Green Ray as well as its promoters and directors from dealing in the capital markets till the refund process is complete.
The Securities and Exchange Board of India said in its order on Monday that funds mobilised by the company were "substantial" and unauthorised.
"As per the balance sheet, the company has received Rs 45.50 crore (as on 31.03.2011) and Rs 13.30 crore (as on 31.03.2010) as 'Advance from Customer'.

"These figures are substantial in terms of mobilisation from the public under the plans launched by the company," the order said.
Green Ray, its promoters and directors have been directed to "not collect any money from investors or launch or carry out any scheme which has been identified as a collective investment scheme (CIS)".

As per Sebi findings, the company without requisite approval had mobilised money from the public with a promise of higher returns on such investments, under the guise of buying/ selling of gold/silver coins in instalments.
Asking Green Ray to wind up its CIS schemes immediately, the market regulator said the entity should submit a winding up and repayment report.

In case of non-compliance with the order, Sebi has warned that prosecution proceedings would be initiated against the company, promoters and directors.
Sebi probe found that Green Ray had launched six plans -- Real Gold Plan, Ever Green Plan, Marriage Plan Tycoon Plan, Happy Nation Plan and Green Line Plan -- wherein the customers would be buying gold/silver coins at a higher mark-up price, but were assured of higher returns.
According to Sebi, the company did not provide physical gold/silver coins to the customer but only made entries in its books and collected money in a manner "which is akin to a bank recurring deposit".

"This, therefore, also appears to be a money mobilising activity by the company, in the guise of sale/purchase of gold/silver coins," it added.
The directors/promoters of the company are -- Mir Shahiruddin (Managing Director), Mir Tahiruddin, Ayub Saha and Khalik Saha.
In recent times, Sebi has clamped down on various fraudulent investment schemes in many states.