Sebi bars NGHDL, directors from collecting money from public

In a crackdown on an unauthorised money pooling scheme promising high returns, Sebi today barred Nicer Green Housing and Infrastructure Developers Ltd (NGHDL) and its directors from raising funds from public and from launching any new investment plans.
The company was collecting funds from the public for developing plots of land through its plans
"The activity of fund mobilisation by NGHIDL under its 'scheme(s)/plan(s)' with a resultant promise of returns, prima facie falls within the ambit of 'collective investment scheme' or CIS," the Securities and Exchange Board of India (Sebi) said in its order.
The regulator found that the company was running a CIS without obtaining a certificate of registration from Sebi.

Consequently, Sebi directed the company and its directors -- Pipal Singh, Surinder Kaur, Ranjit Singh and Karanjit Singh "not to collect any fresh money from investors under its existing scheme and "not to launch any new schemes or plans or float any new companies to raise fresh money".
The entities have also been ordered to immediately submit the full inventory of the assets owned by the company out of the amounts collected from the investors.

Besides, the company and its directors have been asked not to dispose of any of the properties or alienate the assets of the existing scheme as well as not to divert any funds mobilised from the public.

The company and its directors would have to furnish all the information sought by Sebi with regard to scheme-wise list of investors alongwith the details of amount mobilised.
The directions would take effect immediately and would be in force until further orders in this regard.
Sebi had already restrained Pipal Singh from collecting money from investors or launching any new scheme in two other cases-- Nicer Green Forest Ltd (NGFL) and NGHI Developers.
Also, Sebi has received complaints that Nicer Green Forest Ltd or NGFL (group company) is substituting the certificates issued to its investors with the bonds of NGHIDL.

Pipal Singh, a director of NGHIDL, is also the Promoter and Managing Director of NGFL and NGHI Developers India.
"NGFL, NGHI and NGHIDL are related to each other and appear that NGHIDL is being used by Pipal Singh as a vehicle to flout and circumvent" the earlier order issued by Sebi against NGFL in 2013.
Last year, Sebi had retrained NGFL and its directors from dealing in the capital market for failing to wind up CIS and refund money to investors as ordered by the market regulator in 2010. In 2012, the regulator had banned NGHI Developers from collecting money from investors and accessing the capital market.