Collective Investment Schemes case: Sebi asks Capacious Farming to refund investor money

NEW DELHI: Taking action against illegal investment schemes in the garb of trading of animals and their products, markets regulator Sebi has asked Capacious Farming to refund investors money within three months.

The firm and its directors have also been barred from the capital markets for a period of four years while they have also been restrained from launching any Collective Investment Schemes (CIS).

A probe by Securities and Exchange Board of India (Sebi) had found that Capacious and its directors were mobilising funds from public through a scheme without requisite approval from the market regulator.

"I have no hesitation in holding that Capacious and its directors were engaged in the fund mobilising activity by floating/ sponsoring/ launching, unregistered/ unauthorised CIS," Sebi Whole Time Member Prashant Saran said.

Accordingly, Sebi directed Capacious and its directors --Gaurav Yadav, Gurbakhsh Singh and Narmin Kaur Yadav to "wind up the existing CIS and refund the money collected" with returns which are due to its investors within a period of three months.

The company would have to submit a repayment and winding up report including the trail of funds claimed to be refunded, bank account statements indicating refund to the investors and receipt from the investors acknowledging the repayment.

Further, the company and its directors have to "abstain from collecting any money from the investors or launch or carry out any CIS".

Capacious and its directors have been "restrained from accessing the securities market and are prohibited from buying, selling or otherwise dealing in securities market for a period of four years," Sebi noted.

The regulator would initiate attachment and recovery proceedings, besides registering a civil/ criminal case against Capacious among others, if the company fails to comply with the orders.