In a fresh crackdown on illegal fund raising activities, Sebi today barred MVL Ltd and its seven directors from raising further money from investors and asked them not to divert any funds or dispose any properties till further orders.
Based on its preliminary findings, the Securities and Exchange Board of India (Sebi) found that MVL was running a 'collective investment scheme' (CIS) without requisite approvals and registration with the market regulator.
It was alleged that MVL was conducting illegal and fraudulent trading activities by carrying on the business of collecting money from general public, with a promise of assured return.
Sebi took cognisance of a public announcement by MVL in October 2011, whereby the company had invited investment from investors regarding its project, India Business Centre, at Gurgaon, promising an assured return of 12 per cent or Rs 21,000 a month on an investment of Rs 21 lakh.
"I find it reasonable to take recourse through an exparte- interim action against MVL and its directors for preventing it from further carrying on with its fund mobilising activity by launching CIS without registration from Sebi in accordance with law," Sebi Whole Time Member S Raman said.
Accordingly, Sebi directed MVL and its directors --Prem Adib Rishi, Praveen Kumar, Rakesh Gupta, Vinod Mallik, Vinod Kumar khurana, Vijay Kumar Sood and Kalpana Gupta not to collect any money from investors, including under the existing India Business Centre (IBC)project. It also restrained the company from launching any new schemes.
Besides, the regulator also prohibited these entities from disposing of any properties or alienate any of the assets of the IBC project, which are kept in bank accounts /or in the custody of the company.