In a fresh crackdown on illegal money pooling schemes, markets regulator Sebi today ordered Sunplant Bio Energy (SBEPL) and its directors not to raise fresh money from investors.
The company had collected an amount of Rs 4.88 crore under the Social Forestry Scheme and Bio-Fuel Scheme during 2011-12, Sebi said.
Sebi identified the schemes as collective investment schemes, which Sunplant Bio Energy was running without securing approval from Securities and Exchange Board of India (Sebi).
The market watchdog also noted that SBEPL transferred an amount of Rs 26.36 crore to seven group companies, one of which was Sun-Plant Agro Limited.
In December 2013, Sebi had barred Sun-Plant Agro and its three directors from the securities market for five years for running illegal collective investment schemes (CIS) and also prohibited them from mobilising funds.
In today's order, Sebi asked SBEPL and its directors (including former directors)- Awdhesh Kumar Singh, Girija Shankar Kumar, Sumanta Sinha, Neeraj Pathak, Sunil Kumar Jha, Subir Gupta and Padmalochan Nayak- "not to collect any fresh money from investors for its existing schemes".
It also ordered not to launch any new scheme to raise fresh funds.
Further, Sebi prohibited the company from disposing of assets of the existing scheme and diverting any funds raised from investors kept in its bank accounts.
