Sebi today slapped a fine totalling Rs 2 crore on two Sai group firms for failing to comply with the markets regulator's directives of not undertaking fund mobilisation activities.
The Securities and Exchange Bord of India (Sebi) had imposed a penlaty of Rs 1 crore each on Sai Prasad Properties and Sai Prasad Foods.
The regulator, in July 2013, had ordered the two companies "not to collect any money from investors" under their existing schemes and "not to launch any new schemes or plans."
These firms were engaged in illegal funds raising from the public by floating, sponsoring or launching schemes.
"I cannot lose sight of the fact that despite directions issued by Sebi vide interim order dated July 17, 2013, prohibiting the noticees from undertaking fund mobilisation activities, Sai Prasad Properties mobilised Rs 279.74 crore from 7,15,747 investors and Sai Prasad Foods mobilised Rs 48.10 crore from 99,722 investors after the Sebi order," Sebi Adjudicating Officer Suresh B Menon said.
"Noticees have also not disputed the mobilization of funds by them after the receipt of the interim order. Such stark defiance displayed by the noticees towards regulatory directions cannot be viewed lightly," he added.
Accordingly, Sebi has imposed the penalty on these two companies for not complying with its directions issued in July 2013.
