Sebi cracks whip on 'livestock' scheme by Step Up Marketing

In a fresh crackdown on illegal 'livestock' investment schemes promising huge returns, Sebi today barred Step Up Marketing and its directors from raising funds from such schemes, till further directions.
The Securities and Exchange Board of India (Sebi) has prima facie found that the Haryana-based firm was carrying out 'Collective Investment Scheme (CIS)' without obtaining requisite authorisation from the market regulator.
The company was found to be raising money under its schemes 'Real Step Pashupalan and Real Step Breeding Farm' for sale, breeding, rearing and keeping of livestock.
"Protecting the interests of investors is the first and foremost mandate for Sebi and therefore, steps have to be taken to ensure that Step Up Marketing Private Ltd does not collect further funds under its schemes and no investors are defrauded," Sebi said in an order today.

Consequently, Sebi has restrained Step Up Marketing and its two directors -- Harjit Singh Dhariwal and Raghbir Kaur -- "not to collect any fresh money from investors under its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
Besides, the company and its directors have been asked not to dispose of any of the assets obtained through the fund raised as well as not to divert any of the money mobilised.

The entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by Step Up Marketing".

Additionally, the company and the directors have to furnish all the details sought by Sebi within 15 days from including information regarding amount mobilised and refunded.
The capital market regulator had initiated probe into the matter after it had received a complaint on June 3, last year against Step Up Marketing.
The company is stated to be engaged in rearing of livestock mainly goats for its customers.
Under its schemes Step Up Marketing had been selling livestock to the customers for a consideration wherein the purchaser has the option of keeping the purchased livestock with the company for breeding and rearing purposes.