Signals, Powered By EquityPandit
SEBI has restricted Emerging India Infra and four of its former as well as present directors from the stock markets for at least six years and has ordered them to refund investors’ money raised through illegal collective investment schemes (CIS) within three months.
The SEBI’s final order concluded that the firm was operating CIS without registration and had accumulated “at least” Rs 11.27 crores from 2,554 investors through its “sale of plots” scheme during 2010-11.
SEBI’s Whole Time Member, Madhabi Puri Buch said, “The scheme/plan offered by Emerging India Infra Ltd (EIIL) is a ‘collective investment scheme’. It is also observed that such fund mobilizing activity by EIIL was without obtaining a certificate of registration from Sebi, contravening CIS Regulations.”
The present directors, Gurpreet Singh Sidhu and Gurlal Singh, has been barred for six years whereas former directors, Prashant Sharma and Shri Harminder Singh has been barred for four and six years, respectively from the date of completion of refund, according to the SBI order.
SEBI also added that the directors “shall be restrained from holding positions as directors or key managerial personnel of any listed company.”
The board has also asked the entities not to dispose of any of their properties except for the purpose of making refunds to the investors. In case of failure to refund the investors’ money, recovery proceedings will be initiated by the regulator against the entities, the Securities and Exchange Board Of India (Sebi) said.
