Sebi cautions against repeat ponzi operators; names 51 firms

Concerned over a number of ponzi operators continuing to collect funds even after being barred to do so, regulator Sebi today cautioned investors and general public against dealing with such entities and not be lured by promises of high returns.
Making public a list of 51 entities, which included many from West Bengal, the capital market watchdog asked investors not to invest in their illegal schemes that claim to offer much higher returns than banks and other registered entities.
Further, Sebi has asked the investors to report such unauthorised money pooling activities to the market regulator, state authorities including police "immediately, along with appropriate details/documents".

The list of 51 entities banned by Sebi from raising funds include names like Saradha Realty India, Rose Valley Real Estate & Constructions, Sai Prasad Properties, Sun-plant Agro, NGHI Developers India and MPS Greenery Developers.
"It has come to the notice of Securities and Exchange Board of India (Sebi) that certain companies/entities unauthorisedly, without obtaining registration and illegally are collecting/mobilising money from the general investors by making false promises, assuring high return, etc," the market regulator said.
"Investors are advised to be careful if returns offered by the person/entity is very much higher than the return offered by regulated entities like banks, deposits accepted by companies, registered NBFCs, mutual funds etc," Sebi said.

The regulator further said it "does not regulate any scheme or arrangement made or offered by Cooperative Society, Deposits accepted by Non-Banking Financial Companies (NBFCs), among others, and investors should not invest in any company that is not registered and regulated.