Sebi cautions investors against Sai Prasad Group schemes

Having slapped orders against entities from Sai Prasad Group for running illicit money- pooling schemes, market regulator Sebi today cautioned general public against any collective investment schemes run by them.
In a 'caution notice' issued today, Sebi said that it had passed an order in January against Sai Prasad Foods Limited (SPFL) wherein, the company, its promoters and directors were directed to wind up the existing Collective Investment Schemes (CIS) and refund the money with returns to the investors within three months.
"In this regard, it has come to the notice of Sebi that this company had been incorporated as "Sai Prasad Marketing Pvt Ltd" (SPMPL) and the company later on changed its name to SPFL.

"The general public is, therefore, cautioned against any possible investment in the collective investment schemes in the name of SPMPL. Further, existing CIS investors with the companies may approach SPFL for refunds as already directed by Sebi," the regulator said.
Sebi had earlier also passed orders against entities linked to this Pune-based group, after they were found to be raising funds from gullible investors in non-compliance to the regulations.
In its last two orders on January 14, Sebi had ordered immediate closure of unauthorised investment schemes run by two firms -- Sai Prasad Foods and Sai Prasad Properties -- and had directed them to refund investors' money within 3 months.

Besides, the companies and their directors were barred from raising money from the public as well as capital markets.

Sebi has also asked them to submit a proof, including the trail of funds, bank statements to support its contention that it has refunded money to investors.
If the company and its directors and promoters fail to comply with these directions, Sebi would make a reference to the state government/Local Police to register a civil or criminal case against them "for offences of fraud, cheating, criminal breach of trust and misappropriation of public funds".
Sebi also warned that it would also make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company, while it "shall also initiate attachment and recovery proceedings" in the event of failure to comply with its directions.