Sebi bans Parasrampurias

Taking full advantage of the red tape in the regulator8217;s office, Parasrampuria sought time from Sebi by stating that it wants to merge its 22 schemes into one. But Sebi declined.

In January last year, the Sebi granted an hearing to Parasrampuria who submitted that they had made a repayment of about Rs 84 crore and have redressed all the pending investor grievances against it. Further, PPL had requested Sebi to grant some more time to submit a report through its chartered accountants regarding compliance of the conditions of the said regulations and redressal of investor grievances.

In February, 2003, the Sebi asked the company to wind up its existing schemes. PPL was also directed to send the information to its investors, who had subscribed to the schemes within two months. The company failed to comply with Sebi8217;s directives and investors8217; complaints continued to increase against the company.

By the time Sebi finally decided in four long years that the Parasrampurias are banned from accessing market, lakhs of investors are rueing the day they made investments in the plantation company.