Latest News | Sebi Imposes Rs 94 Cr Fine on GCA Marketing, 2 Others
Get latest articles and stories on Latest News at LatestLY. Capital markets regulator Sebi on Friday imposed a fine totalling a little over Rs 94 crore on GCA Marketing Pvt Ltd and two individuals for illegally mobilising funds from the public through a collective investment scheme.
New Delhi, Jun 24 (PTI) Capital markets regulator Sebi on Friday imposed a fine totalling a little over Rs 94 crore on GCA Marketing Pvt Ltd and two individuals for illegally mobilising funds from the public through a collective investment scheme.
The individuals are Amarjeet Singh Cheema and Gurdeep Singh. They were the directors of GCA Marketing when the company mopped up the amount by running an illegal collective investment scheme.
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The total fine is payable by GCA, Cheema and Singh jointly and severally.
In its order, the regulator found that the company and individuals were engaged in fund mobilising activity from the public, which was in the nature of a collective investment scheme (CIS). They had collected the money in the name of contract farming.
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As per the order, the company has mobilised funds to the tune of Rs 428.07 crore, from March 09, 2005, up to March 31, 2014, and a further amount of Rs 47.83 crore from the public by operating a CIS without obtaining a certificate of registration under CIS rules.
"The company was illegally mobilising funds for 9 years without the requisite certificate of registration and accordingly the market watchdog slapped a penalty of Rs 1 crore on the entities for violating CIS norms," Sebi's Adjudicating Officer Soma Majumder said.
The company made an unlawful gain of Rs 93.08 crore at the cost of the investors. Therefore, I conclude that an amount of penalty equivalent to Rs 93.08 crore which was illegally mobilised by the company since 2013, ought to be imposed on the entities, she added.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)