Clamping down on unauthorised money pooling activities, regulator Sebi today ordered Future Gold Infrabuild India Ltd to refund Rs 41 lakh raised from such schemes to investors within three months.
Besides, the firm and its directors have been barred from the capital markets for at least four years.
A Securities and Exchange Board of India (Sebi) probe found that the company mobilised Rs 41 lakh from investors under the garb of a real estate business for the sale, purchase and development of agricultural land.
The firm had launched and operated collective investment schemes (CIS) without obtaining regulatory approval.
"Further, I find that Future Gold and its directors have contravened the provisions of... the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations...," Sebi Whole Time Member G Mahalingam said in an order.
The regulations provide that dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves illegal mobilisation of funds.
Accordingly, Sebi has asked the company and its five directors to wind up the existing CIS and refund the money collected by it under the scheme with returns which are due to the investors within a period of three months.
The directors are Dhirendra Singh Kushwah, Satyendra Singh, Vineet Kumar Phalke, Afasar Khan and Dinesh Singh Bhadoriya.
Besides, the firm and its directors have been restrained from accessing the securities market till the directions for refund to investors are complied "with the satisfaction" of Sebi and for a further period of four years from the date of completion of such repayment to investors.
