MUMBAI: Continuing its crackdown on illicit money-pooling schemes, Sebi today barred Karmbhoomi Real Estate from raising funds from the public with immediate effect and directed it to not launch any new scheme.
Based on a preliminary probe, the Securities and Exchange Board of India (Sebi) found that Karmbhoomi was running 'collective investment schemes (CIS)' without obtaining requisite certification.
In an order today, Sebi whole time member S Raman said: "I find no other alternative but to take recourse to an interim order against Karmbhoomi and its directors for preventing them from further carrying on with its existing fund mobilising activity by launching CIS, without obtaining registration from Sebi in accordance with law".
The regulator has asked the company and its 5 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 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 Karmbhoomi" as well as furnish withing 15 days details related to the scheme.
Sebi had received a complaint alleging that companies, including Karmbhoomi, had launched various collective investment schemes without obtaining certificate of registration from Sebi or RBI.