Sebi directs JSR Dairies to refund investors

Markets regulator Sebi has ordered JSR Dairies and its directors to refund within three months the money they had raised illegally from investors and barred them from the capital markets for four years.
A probe by the Securities and Exchange Board of India found that JSR Dairies was running Collective Investment Scheme (CIS) without obtaining regulatory approval.
The firm was "soliciting investments from the public towards purchase and allotment of calf/ghee under various subscription plans" and had raised Rs 84.28 lakh from 503 investors through its schemes.
"The company and its directors have submitted that all the customers would either be refunded or would be supplied with goods by March 2015," Sebi noted.

"Further, as per the provisional balance sheet dated March 2015, the company does not appear to have sufficient funds in its bank account to repay the customers," it added.
In an order dated November 20 Sebi said JSR Dairies and its directors "shall wind up existing CIS and refund the money collected by the said company under the schemes with returns which are due to its investors...Within a period of three months".

Thereafter, they have to submit a winding up and repayment report to Sebi within a period of 15 days.
Also, the market watchdog has prohibited the company and its directors from the securities markets for four years and the ban would "till all the CIS are wound up and all the money mobilised through such schemes are refunded to its investors with returns which are due to them".

In case the firm fails to comply with the order, Sebi would make a reference to the state government/local police to register a civil/criminal case against JSR Dairies and its promoters, directors.
It would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company. It would also initiate attachment and recovery proceedings against the firm.