SEBI launches prosecution in 568 CIS cases, 1,100 others

Press Trust of India New Delhi | Updated on January 16, 2018 Published on December 29, 2016

Markets regulator SEBI has launched as many as 568 prosecution cases till December 15 against those collecting money from the public through illegal investment schemes and nearly 1,100 other cases for violation of securities norms.

The entities have garnered funds through fraudulent investment schemes with promise of huge returns to investors.

SEBI has clamped down on a number of illegal collective investment schemes (CIS) on entities including PACL, Dhanolty Developers, Saradha, Sai Prasad, HBN, Alchemist Infra, Maitreyi and Rose Valley groups.

Violation of others norms

It has also initiated proceedings against 1,084 entities, including Sunheaven Agro India, Sunplant Forgings, Unickon Securities, Pyramid Saimira Theatre, NVD Solar, and Kolkata Weir Industries for violation of other capital market norms.

These proceedings include attachment of bank and demat accounts, attachment of movable and immovable properties and appointment of receivers for management of attached properties.

The regulator has been granted more powers through amendments in the SEBI Act, to pass attachment orders and launch recovery proceedings against fraudsters and market manipulators, including those running illegal deposit schemes and those failing to pay penalties and other dues.

A special court is also hearing several cases filed by the regulator, which would help fast-track the prosecution and recovery proceedings against the defaulters.

Published on December 29, 2016
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