On February 9 the Market regulator SEBI slashed a fine of Rs 40 lakh on Shri Ram Real Estate & Business Solutions. According to SEBI, the company and six individuals has illegally raised funds of Rs 40,000 from the public through collective investment plans/schemes.

Market regulator SEBI imposed a fine of Rs 40 lakh on Shri Ram Real Estate & Business Solutions and six individuals. According to SEBI, the company has illegally raised funds of Rs 40,000 from the public through collective investment plans/schemes. The company and individuals found engaged in fundraising activity from the public. These fund raising activities was a part of collective investment schemes. 

What was wrong with the investment schemes? 

SEBI in an order passed on Monday said that the schemes offered by (SRE and BSL) Shri Ram Real Estate and Business Solutions Ltd are a form of investment schemes under the guise of ‘plot and purchase of land’. Further investigation stated that the company did not obtain registration as per CIS norms.

SRE and BSL had raised approximately Rs 12.01 crore from 382 investors. The funds were raised during financial years 2008-09 to 2013-14 under several schemes. SEBI has imposed penalties on the company and individuals. These penalties was imposed on directors at the time of fundraising are payable jointly or separately.

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