New Delhi: Capital markets regulator Sebi has ordered Ally Multitrade India and its directors to refund the money, it had illegally raised from investors, along with promised returns within three months.
Besides, Securities and Exchange Board of India (Sebi) has barred the company and its director from the securities markets for four years.
A Sebi probe found that Ally Multitrade was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was collecting money from public at large in the name selling of plots under its scheme.
Sebi said the company had mobilised over Rs 2.33 crore from people between 2012 and 2014. However, the firm claimed it has refunded over Rs 28 lakh to investors.
In an order, Sebi has directed the firm and its directors -- Chetan Yashwant Thakur, Vijay Dattaram Chavan and Suryakant Sambu Bhosle -- "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."
Further, the regulator has barred them from accessing the securities market for four years and the ban would continue till all the CIS are "wound up and all the money mobilised are refunded to the investors with returns."
Earlier, Sebi, through an interim order in July this year, had directed Ally Multitrade and its directors "not to collect any fresh money from investors under its existing schemes" as well as "not to launch any new scheme".
In case the company fails to comply with the order, Sebi would make a reference to state government/local police to register a civil/criminal case against Ally Multitrade India, it promoters and directors, for offences of fraud, cheating, breach of trust and misappropriation of public funds."
In addition, the capital markets watchdog would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company.
Besides, Sebi would initiate attachment and recovery proceedings against the firm.
