SEBI Bars Susk India and Cemendia For Raising Money

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The Market regulator barred Susk India for raising public money. Susk india’s Collective investment Schmes’ raised money without registering and informing Sebi. The regulator has also barred Cemendia from mobilizing money from public by issuance of securities. The regulator found that Cemendia raised the money through issuance of secured Non Convertible Redeemable Debentures, violating sebi norms.

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NEW DELHI: Pulling the plug on illicit investment schemes, marker regulator SEBI has restrained Susk India Ltd and its directors from raising fresh capital from the public, with immediate effect.

The company collected Rs 5 crore from over 200 investors through its scheme of ‘selling of plots’ with a promise of high return on investment.

The Securities and Exchange Board of India (Sebi) found that Susk India was running ‘collective investment schemes (CIS)’ without obtaining registration from the regulator. The scheme  offered by Susk India with a resultant promise of returns. prima facie satisfies all the conditions of CIS,” Sebi said in its interim order.

Accordingly, Sebi has ordered Susk India and its directors “not to collect any fresh money from investors under its existing schemes” and also asked them “not to launch any new schemes or plans or float any new companies to raise fresh money.”

Additionally, the company and its directors have been directed not to dispose any assets obtained from 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 by Susk India” as well as furnish details related to the scheme withing 15 days.

In a separate order, Sebi has barred Cemendia Infrastructures and its directors from mobilizing money from public by issuance of securities.

The regulator found that Cemendia had raised Rs 1.3 crore from 1,665 investors through issuance of secured Non Convertible Redeemable Debentures in 2011-12.

The company, through such activity, had allegedly violated various norms, Sebi said.

The regulator observed that allotment of securities by the company was a public issue, which under the rules require a compulsory listing on a recognised stock exchange. It was also required to file a prospectus, among others.

“Cemendia is prima facie engaged in fund mobilizing activity from the public, through the offer of NCDs” and as a result of the such activity, has violated the provisions of the Companies Act, Sebi said.

Accordingly, Sebi has restrained the company and its directors from mobilizing any fresh funds through the issue of securities to the public, and/or invite subscription, in any manner whatsoever, either directly or indirectly or till further directions. Further, the firm and its directors have been barred from issuing any offer document or advertisement for soliciting money from the public for the issue of securities.

They have been restrained from accessing the securities markets. These directions in both cases “shall come into force with immediate effect and shall continue to be in force till further directions”.

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