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Journalism of Courage
MUMBAI, JUNE 15: The Securities and Exchange Board of India (Sebi) today said that all plantation companies and other collective investment schemes makers can not issue any advertisement for mobilising funds unless their schemes carry a rating from any of the accredited credit rating agencies.
Further those companies which have already obtained a rating must prominently disclose the ratings and their implications and definitions in any advertisement, brochure, pamphlets and other publicity material issued by them, Sebi said.
Advising the public to exercise a caution while investing in plantation companies, the regulatory authority warned that serious action would be taken against those companies which do not comply with the Sebi directives which are being issued in pursuance of the directions given by the Bombay High Court. “An investor contemplating investment in plantation schemes should ensure that the scheme carries a rating and insist on physical verification of assets claimed to be owned by thecompany.
An investor must check if the viability of the project has been established by a reputed appraisal agency he should not get carried away by promises of high returns and attractive brochures,” Sebi said. The investor should understand the impact of the rating and not be taken in by promises of incentives and post dated cheques. It also advisable to look into the background of the promoters and check if they have the sufficient experience and expertise.
Meanwhile, Sebi has suspended the certificate of registration of Ficom Project Technologists and Sajjan Kanodia, both category IV merchant bankers from June 5 and June 10 respectively for non payment of annual registration fee. It has issued a warning to SR Uppal & Co, member of Ludhiana Stock exchange, and Shree Ram & Co, member of Delhi Stock Exchange, for violating norms.
