Caution to Investors-WARNING SEBI cautions investor – Issues list of 51 Companies

Caution to Investors-WARNING

SEBI cautions investor – Issues list of 51 Companies

SEBI Press Release No. PR No. 165/2014

Dated -December 11, 2014, Mumbai

          It has come to the notice of Securities and Exchange Board of India (SEBI) that certain companies / entities unauthorisedly, without obtaining registration and illegally are collecting / mobilising money from the general investors by making false promises, assuring high return, etc. Investors are advised to be careful if the returns offered by the person/ entity is very much higher than the return offered by the regulated entities like banks, deposits accepted by Companies, registered NBFCs, mutual funds etc.

          Wherever SEBI has found such schemes to be in the nature of Collective Investment Schemes (CIS) appropriate action has been taken against the entity/ies and its Directors. In this regard, since January 01, 2011, SEBI has passed orders against 51 entities and its Directors carrying on unregistered CIS. As part of interim directions SEBI directs the entities and its Directors to stop collecting further money under existing / new schemes, not to launch any new scheme or float any new companies/firm to raise fresh moneys, not to divert or alienate any assets or money collected etc., and through final directions SEBI debars the company and its Directors from accessing the Capital markets, etc. List of the Companies against whom order has been passed by SEBI is given below with this press release. The orders are also available on SEBI website at http://www.sebi.gov.in.

          However, it has been observed that certain entities collect / mobilize money under existing / new schemes even after SEBI has directed the entity not to collect any further money, not to launch any new schemes etc, which is unauthorised and illegal.

Investors and general public are hereby cautioned that other than “GIFT Collective Investment Management Company Limited” no other entity is registered with SEBI under the CIS Regulations. If any of the following entities are found to be collecting / mobilising money, investors are advised not to subscribe to such schemes and to report the same to SEBI, State authorities including Police authorities immediately, along with appropriate details / documents.

           Investors are also advised that SEBI does not regulate any scheme or arrangement made or offered by Cooperative Society, Deposits accepted by Non-Banking Financial Companies (NBFCs), Deposits accepted under 58A of Companies Act, Chit Fund Business, Contract of Insurance, Pension Scheme or Insurance Scheme, Nidhi or mutual benefit society and any other activities which are regulated by any other Authority or banned under any existing law viz., Multi Level Marketing, Pyramid schemes, etc. Accordingly, investors are cautioned not to invest in any company which is not registered and regulated and bring such schemes to the notice of various authorities i.e SEBI, Reserve Bank of India (RBI), Central Bureau of Investigation (CBI), Ministry of Corporate Affairs (MCA), Pension Fund Regulatory and Development Authority (PFRDA), Insurance Regulatory and Development Authority (IRDA) and State / Police Authorities, etc.