Left Menu
Development News Edition

Sebi slaps Rs 20 cr fine on Pancard Clubs, 4 directors for illegally raising funds

The company had failed to comply with Sebi's direction in February 2016 ordering it to refund investors over Rs 7,000 crore, raised through illegal collective investment schemes (CIS). Pancard Clubs had mobilised Rs 7,035 crore from 51,55,516 investors from 2002-03 to 2013-14 through its various holiday schemes..

PTI | New Delhi | Updated: 31-07-2020 22:08 IST | Created: 31-07-2020 22:08 IST
Sebi slaps Rs 20 cr fine on Pancard Clubs, 4 directors for illegally raising funds

Capital markets regulator Sebi on Friday slapped a total fine of Rs 20 crore on Pancard Clubs and its four directors for illegally mobilising money from investors through unregistered collective investment schemes (CIS). The firm is a part of Panaromic Group of companies having interest in hospitality, timeshare, travel and tourism and information technology, Sebi noted.

The entities are liable to pay the fine amount jointly and severally, Sebi said in an order. The directors are Manish Kalidas Gandhi, Chandrasen Ganpatrao Bhise, Ramachandrandran Ramakrishnan and Shobha Ratnakar Barde.

Sebi during an investigation found that the firm was carrying out CIS activities under the garb of timeshare business without obtaining requisite approval from the regulator as mandated under Collective Investment Scheme Regulations. Citing Prohibition of Fraudulent and Unfair Trade Practices norms, Sebi said it "prohibits any person from dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves fraud and illegal mobilization of funds by sponsoring or causing to be sponsored or carrying on or causing to be carried on any collective investment scheme by any person".

For violating market norms, the regulator imposed monetary penalty on the firm and its directors. In the event of failure to pay the fine amount within 45 days, recovery proceedings may be initiated, Securities and Exchange Board of India (Sebi) said.

From information in public domain, Sebi noted that the entities raised over Rs 7,000 crore through unregistered CIS and recovery proceedings have also been initiated against them. The company had failed to comply with Sebi's direction in February 2016 ordering it to refund investors over Rs 7,000 crore, raised through illegal collective investment schemes (CIS).

Pancard Clubs had mobilised Rs 7,035 crore from 51,55,516 investors from 2002-03 to 2013-14 through its various holiday schemes..


TRENDING

OPINION / BLOG / INTERVIEW

3D printing and the future of manufacturing post COVID-19

The on-demand, customizable, and localized manufacturing of product components facilitated by 3D printing has the potential to redefine manufacturing but there are certain technical, mechanical, and legal limitations that, unless ...

How UK’s 'best prepared' healthcare system failed to gauge COVID-19

The UK is proud of their public health system and its unlike any other country as around 90 percent of British public supports the founding principles of National Health Service. But without accurate data being available to stakeholders in ...

Poor on IHR capacity progress in 2019, WHO says Cambodia tops COVID-19 response

Despite being in proximity to Hubei, the original epicenter of COVID-19 pandemic, Cambodia has reported just 226 confirmed cases and zero deaths. After seeing the data, WHO appreciated Cambodias healthcare information system but experts dou...

Loopholes in Healthcare Information System may have failed Singapore COVID-19 model

In the initial days of the COVID-19 outbreak, Singapore was in the limelight for its effective healthcare system and pandemic response plan. However, Singapore has now joined the list of the worst-hit nations and the situation is even worse...

Videos

Latest News

California judge weighs Uber, Lyft driver classifications

California and three of its largest cities urged a state judge on Thursday to issue a preliminary injunction requiring Uber Technologies Inc and Lyft Inc to classify their drivers as employees rather than as contractors.The argument was mad...

EXCLUSIVE-Taiwan in talks to make first purchase of sophisticated U.S. drones - sources

The United States is negotiating the sale of at least four of its large sophisticated aerial drones to Taiwan for the first time, according to six U.S. sources familiar with the negotiations, in a deal that is likely to ratchet up tensions ...

Attack on Titan Season 4: Final season’s beautiful ending, returning of lead cast from previous seasons

If youre an anime enthusiast, you must be ardently waiting for Attack on Titan Season 4. Many fans are disappointed as the fourth season will mark end to the series, but they are excited as it is going to be quite interesting in many ways.T...

Macron says aid to blast-stricken Lebanon will not go to 'corrupt hands'

French President Emmanuel Macron on Thursday promised aid to Lebanon but reassured angry citizens reeling from a lethal blast that killed 145 people that no blank cheques will be given to its leaders unless they enact reforms and end rife c...

Give Feedback