Mumbai: To safeguard investors from illegal money-pooling scheme by IHI Developers, market regulator Sebi has barred the company and its directors from raising funds from public and from launching any new investment plans.
The company was collecting funds from the public for the scheme of sale/purchase and development of land through various payment plans.
The fund mobilisation activity by IHI Developers, under the 'scheme' with a resultant promise of return, falls within the ambit of 'collective investment scheme' or CIS, according to the Securities and Exchange Board of India (Sebi).
"It prima facie appears that IHI Developers is running a 'CIS' without obtaining a certificate of registration from Sebi," the regulator said in its yesterday's order.
Consequently, Sebi directed the company and its directors -- S Harjit Singh, Kulbir Singh, Sanjeev Kumar and Ranjit Kaur--"not to collect any fresh money from investors under its existing scheme and "not to launch any new schemes or plans or float any new companies to raise fresh money".
The entities have also been ordered to immediately submit the full inventory of the assets owned by the company out of the amounts collected from the investors.
Besides, the company and its directors have been asked not to dispose of any of the properties or alienate the assets of the existing scheme as well as not to divert any funds mobilised from the public.
The company and its directors would have to furnish all the information sought by Sebi with regard to scheme-wise list of investors along with the details of amount mobilised and refunded till date.
The directions would take effect immediately and would be in force until further orders in this regard.
The new directives comes following a complaint received by Sebi in October 2011 wherein it was alleged that one Harjit Singh was collecting funds from the public through his company IHI Developers.
It was also stated that Singh was earlier collecting funds through another company Imbowers Housing & Development.
