Companies

CIS: SEBI bans NICL India, directors from markets

PTI New Delhi | Updated on June 22, 2018 Published on June 22, 2018

File Photo   -  REUTERS

Regulator SEBI has banned Madhya Pradesh-based NICL India Ltd and its three present directors from the securities market for at least four years and directed them to refund the money the firm had collected through illegal collective investment schemes from the investors.

The directors -- Phool Singh Choudhary, Harish Sharma and Abhishek S Chouhan -- have also been restrained from holding position as directors or key managerial personnel of any listed company for a period of four years, SEBI said in a fresh ruling.

The ruling has come more than three years after the regulator had passed an interim order in January 2015, wherein it had “prima facie” observed that NICL India was involved in illegal mobilisation of funds from the public through schemes. They were collective investment schemes (CIS) without obtaining certificate of registration from the SEBI.

The schemes related to purchase and development of land and the company had raised nearly Rs 7 crore from thousands of investors during the financial years 2010-11, 2011-12 and 2012-13.

“I have perused the contents of the interim order and do not find any reason to differ with the prima facie conclusion arrived at in the interim order,” said G Mahalingam, whole time member of SEBI.

The entities have been ordered to wind up the firm’s existing CIS and refund the investors within a period of three months.

Following the completion of the refund, within a further period of seven days, NICL and its directors have to submit a winding up and repayment report (WRR) to the Securities and Exchange Board of India (SEBI).

In case, the entities fail to comply with SEBI’s directions, the regulator said it will “initiate recovery proceedings” against them.

Published on June 22, 2018
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