Regulator Sebi Monday ordered Networth Marketing Ltd and its directors to refund investors’ money, which the company raised through illegal collective investment schemes (CIS), within three months. Sebi has also barred the firm and its directors 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, they have been restrained from holding position as director or key managerial personnel of any listed company for four years. According to the regulator, Networth Marketing raised funds from the public through various “schemes of booking and sale of plots of land” which were in the nature of collective investment schemes without getting registration from Sebi. It mobilised Rs 37.27 crore from around 18,000 investors.
“The company has submitted some bank account statements which reflect repayment of around Rs 7.3 crore to the investors,” Sebi Whole Time Director G Mahalingam said in an order. In an order, Sebi said Networth Marketing and its directors — Anis Mohamad Kazi, Bhaskar Bhao Vasage, Mahendra Mahadeo Bhuvad, Nuruddin Shaikh, Bhalerao Yashwant Misal and Partha Ghosh — are “jointly and severally liable to wind up its existing CIS and refund the money collected from investors under the schemes with returns due to the investors as per the terms of the offer within a period of three months”.
After completion of the refund, they would have to submit a winding up and repayment report to Sebi within seven days. In case they fail to comply with Sebi’s directive, the regulator would initiate recovery proceedings against them. Besides, Securities and Exchange Board of India (Sebi) has barred them from disposing of or selling or creating any encumbrance on any of the assets of the company except for the purpose of making refunds to its investors.