New Delhi: Markets regulator Securities and Exchange Board of India (SEBI) on Monday ordered V3 Infrastructure and Estates and its three directors to refund within three months the investors' money that the company had raised through an illegal collective investment scheme (CIS).
The regulator has also barred the four entities from the capital market "till the directions for refund/repayment to investors are complied with... and for a further period of four years from the date of completion of the refund".
Also, the directors -- V Santosh Kumar, V Madhusudhan and H Sireesha -- have been restrained from holding position as directors or key managerial personnel of any listed company for a period of four years.
According to an interim order passed by Sebi in 2015, V3 Infrastructure and Estates had raised approximately Rs 31 lakh from 78 through a scheme called "own your property".
After noting that the fund mobilising activity of the firm under the garb of a real estate business, fell within the parameters of CIS, which was being carried out without getting registration from Sebi, the regulator had directed the company and its directors not to collect fresh money from investors from the existing scheme, among others, in the interim order.
In the fresh order, SEBI reiterated that the activities of the firm and its directors constitute a CIS and they have been carried out without seeking a registration from Sebi, thereby contravening the CIS Regulations.
The firm and its directors are "jointly and severally" liable to wind up the existing collective investment scheme and refund the money collected under the scheme with returns which are due to the investors within a period of three months, SEBI said.
After completion of the refund, the four entities would have to submit a winding up and repayment report to SEBI within seven days.
In case the firm and its directors fail to comply with Sebi's directive, the regulator would initiate recovery proceedings against them.
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