NEW DELHI, January 16: After fixed deposits, it's now the turn of plantation schemes. The Securities and Exchange Board of India is gearing up to take action against these companies which have floated collective schemes. To begin with it will carry out an inspection of 50 companies. As many as 315 companies, who have floated collective schemes, have filed information with SEBI.SEBI Chairman, D R Mehta gave a glimpse of the money mobilised through these schemes and their investor reach. Golden Forest India Ltd, a Chandigarh-based company has raised Rs 1,000 crore from 27 lakh investors, through a network of seven lakh agents. Another company, Okara Group based in Delhi has raised Rs 70 crore through collective schemes. The SEBI chairman also pointed out that as many as 26 companies have deposits of Rs 5 crore and above. This means that 26 companies have raised Rs 130 crore as deposits from the public.``A disturbing revelation from the information collected so far is that some of these companies show deposits as their own income,'' Mehta pointed out.Besides, SEBI has asked one or two companies to stop their advertisement campaign on television. He, however, refused to divulge the names of these companies ``at this stage''. Of the 315 companies, which have filed information with SEBI, 189 are from the northern region, while 121 are from the western region. This shows the popularity of such schemes in these regions. The last date for filing information by companies floating collective schemes was January 15.Explaining how SEBI would be going about regulating these companies, Mehta said our ``attempt is to stop further damage''. Though it may not be possible to ensure that defaulting companies return deposits to investors, it would be possible to freeze their assets.Since the regulations are being drafted by the SEBI-appointed committee, headed by S A Dave, former chairman of UTI and SEBI, Mehta pointed out that any action taken now may be challenged. The committee is expected to submit its reports in the next two to three months. Apart from appointing a committee, SEBI has banned the launch of any new collective schemes. Besides, fresh collections under existing schemes have also been banned. 300 merchant bankers face SEBI action NEW DELHI: The Securities and Exchange Board of India (SEBI) has initiated action against 300 merchant bankers for their irregularities. This forms part of SEBI's efforts to clean up the capital market and restore the confidence of investors. SEBI chairman DR Mehta said here today, "these 300 merchant bankers either face action or enquiries are going on against them.''
