Mumbai: Pulling the plug on illicitmoney pooling activities, SEBI on March 30, prohibited two Swar group firms from raising funds from the public with immediate effect as well as launching any new schemes. The Uttar Pradesh-based companies - Swar Agrotech India and Swar Agroteak and Housing (India) - were collecting money from the investors by promising allotment of land and high returns from the profits received on the land. Based on a preliminary probe, Securities and Exchange Board of India (SEBI) found that the firms were running 'collective investment schemes (CIS)' without obtaining certification from the market regulator.
In two separate orders on March 30, said SEBI that it was "necessary to take urgent preventive action" to ensure that the the firms and their directors do not collect further funds under the schemes and to safeguard public money "until full facts and materials are brought and final decision is taken in the matter". Accordingly, the regulator has asked the company and its directors "not to collect any fresh money from investors under its existing schemes" and "not to launch any new schemes or plans or float any new companies to raise fresh moneys".
Additionally, the company and its directors have been directed not to dispose any assets obtained from the funds collected, while the entities also cannot divert money raised from the public. Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised" and furnish within 15 days details related to the schemes. SEBI had received complaints on March 26, 2013 alleging that the companies were collecting money from the investors by promising allotment of land and that it had collected huge sums of money by promising to pay high returns from the profits received on the land. However, it was alleged that the firms were neither registered with RBI nor it has any licence to raise money from the investors.
