Sebi today banned Insure Life Infrastructure India along with its present and former directors from the securities market for at least four years and also directed them to refund money collected illegally from investors in three months.
These directors have also been restrained from holding key managerial position of any listed company for four years, the Securities and Exchange Board of India (Sebi) said in an order.
The firm was involved in illegal mobilisation of funds from the public through schemes in the nature of Collective Investment Schemes (CISs) without obtaining registration from Sebi, thereby contravening CIS and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, it said.
"It appears that the company is merely mobilising money from customers under its various schemes in the guise of selling plots," it added.
According to Sebi, the firm has collected about Rs 12 crore as final payment under its various schemes between 2010 -11 and 2013-14. Further, it has shown an amount of about Rs 4 crore as plot booking receipt under its 'other current liabilities' as on March 2014.
In an order, Sebi said the firm and its present and former directors -- Jagdish Prasad Sharma, Laxmi Khandelwal, Jagdish Prasad Khandelwal, Abhishek Khandelwal, Dinesh Kumar Sharma, Amit Jaiswal and Pawan Kumar Meena -- are jointly and severally liable to wind up their existing CISs and refund the money collected through it, along with returns, within three months.
In the event of failure to comply with its directive, Sebi will initiate recovery proceedings against them.
Further, these entities have been restrained from accessing the securities market till the directions for refund to investors are complied with and for a further period of four years from the date of completion of the repayment.
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