Sebi bars Prosperity Agro from collecting money from public

In a fresh crackdown on fraudulent investment schemes promising huge returns from 'cattle and goat farms', market regulator Sebi today barred Prosperity Agro India Ltd and its directors from raising funds from such schemes.
The company as well as its directors have also been asked to submit full details of assets owned by them through investor money and not to divert any funds or dispose any properties.
The crackdown against Prosperity Agro follows actions by Sebi against similar schemes launched by several entities including Parivar Dairies and Allied Ltd, Samruddha group, HBN Dairies and Beetal Livestock.
Prosperity Agro is a related entity of Samruddha Jeevan Foods India Ltd (SJFIL), which has already been prohibited by Sebi in 2013 from mobilising funds from the public.

It was alleged that instead of refunding the money on maturity, SJFIL transferred the membership to Prosperity Agro and later on to Samrudha Jeevan Multi-Purpose Cooperative Society Ltd.
Prosperity Agro was raising money from the public through its various rearing schemes.

The Securities and Exchange Board of India (Sebi) found that Prosperity Agro was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
Accordingly, Sebi has barred Prosperity Agro and its directors --Santosh Shrawan Mali, Santosh Kaluram Paygude Vanshree Tukaram Chidrawar, Hrishikesh Vasant Kanase and Dattatray Madhav Yadav--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 alienating any of the properties or assets owned or acquired through the money raised.
Further, they can't divert any funds raised from public at large which are kept in bank account of the company. They have to furnish all details of its investors, among other information, to Sebi.
In two separate orders, Sebi has prohibited two firms-- Affiance Industries and I-Nova Solutions-- from mobilising fund from public through the issuance of securities till further directions.

The capital markets watchdog has barred these companies and their respective directors from accessing the securities markets.
These firms had raked in over Rs 4 crore by issuing redeemable preference shares to more than 4,500 people. These funds were mobilised funds from the public without complying with the applicable law.
These directions would take effect "immediately and shall be in force until further orders," it said.