Often such companies have been found to be raising money from public by misusing routes
SEBI
New Delhi: To check the menace of illicit money-pooling activities of small unlisted companies, Sebi has proposed a joint task force of financial regulators and intelligence agencies to bring them under regulatory ambit. Under the existing regulations, any fund-raising worth Rs 100 crore or more from the public through any unregistered scheme is deemed to be a CIS and it comes under Sebi’s jurisdiction.
Besides, any fund raising exercise involving 50 or more investors is considered as a public offering and therefore it is also regulated by Sebi. However, there are many cases where companies claim to have raised funds from less than 50 investors and peg their total mop-up at below Rs 100 crore to avoid any regulatory glare. Often such companies have been found to be raising money from public by misusing routes.
( Source : PTI )
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