Sebi cracks the whip on cattle investment scheme sponsors

The Securities and Exchange Board of India Sebi has clamped down on a bizarre investment scheme by Delhi-based HBN Dairies amp; Allied Ltd which mobilised over Rs 1,100 crore from the public for purchase of cattle with a promise of more than doubling the money through returns linked to ghee produced by them.

The Sebi ordered HBN and its directors to submit a reasonable proposal including firm time lines with regard to the manner in which it proposes to wind up its schemes and make payments along with the returns which are due to its investors within a period of 30 days. It directed HBN and its directors Harmender Singh Sran,Satnam Singh Randhawa,Amandeep Singh Sran,Gajraj Singh Chauhan,Manjeet Kaur Sran,Jasbeer Kaur, Rakesh Kumar Tomar,Sukhdev Singh Dhillon and Sukhjeet Kaur not to solicit or collect any further money from investors into its schemes or carry out any money collection schemes.

HBN Dairies has also been barred from disposal of assets except for the purpose of winding up of its schemes.