Cracking down on illegal investment schemes, the Securities and Exchange Board of India (Sebi) today barred G-Life India Developers and Colonizers and its directors from mobilising funds from the public with immediate effect.
The move comes after the regulator took suo moto notice of a newspaper article, wherein it was reported that G-Life India Developers was raising funds from the public under the garb of real estate business. Sebi found that the company was collecting money from investors through collective investment scheme (CIS) without obtaining requisite registration from the market regulator.
As on March 2015, G-Life India, prima facie, mobilised an amount of Rs 23.5 cr through schemes involving plots of land offered by it, the regulator said in an order. Sebi Whole Time Member G Mahalingam said the company failed to submit complete details sought by it.
"I find no other alternative but to take recourse through an interim order against G-Life India and its directors for preventing them from further carrying on with its existing fund mobilising activity by launching CIS without registration from Sebi," he said.
Accordingly, Sebi has passed directions against the firm and its directors -- Giriraj Pandey, Deepak Sharma, Siraj Ali, Manoj Kumar Pandey, Pramod Kumar Pandey, Sunil Kumar Sharma and Pappu Pawar.
They have been asked "not to collect any fresh money from investors for its existing schemes" as well as "not to launch any new schemes/ plans or float any new companies to raise fresh money".
Sebi has banned the company and its directors from disposing of or alienating any assets owned or acquired through the money raised by the company. These directions would take effect immediately and would be in force until further orders.