SEBI has ordered Sai Prasad Corporation (SPC) to refund investors ₹615.47 crore raised through collective investment schemes within three months from February 1 (the date of the order) as the fund was raised without permission of the market regulator.

SEBI also banned company directors Balasaheb K Bhapkar, Shashank B Bhapkar, and Vandana B Bhapkar from accessing the capital markets for four years and restrained them from selling assets of SPC to repay investors.

‘Provide assets’ detail’ The directors have also been told to provide full details of their assets and properties, including information on bank accounts, demat accounts and holdings of shares.

Prashant Saran, Whole Time Member, SEBI in his order, said, “I find from the material on record that Balasaheb, Shashank and Vandana were directors of SPCL during the period when the company was collecting money. Therefore, they are responsible for the violations along with the company.”

If the directors do not comply with the directions, SEBI said police complaints and civil/ criminal cases would be filed against the company and its directors, and the Ministry of Corporate Affairs will be moved to initiate the process of winding up of the company. Further, the order said, the promoters would be banned from accessing capital markets permanent if they do not refund investors’ money within the specified time period.

Mop-up during 2012-14 SPC had collected ₹137.12 crore in financial year 2012-13 and another ₹478.35 crore in 2013-14 through its subsidiary after SEBI had issued an interim order in July, 2013, restraining the parent company from raising money.

“Through the notices I find the company has launched and were carrying on collective investment schemes, without obtaining certificate of registration from the Securities and Exchange Board of India. Therefore, they have contravened the provisions of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations,” said the order.

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