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..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Blockchain in Healthcare: Opportunities and challenges

The use of blockchain in healthcare is a relatively new innovation with many of its uses still being explored and related technologies being developed, improved, and scaled. ...

Debate surrounding vaccine passports and development misses bigger picture

... ...

Blockchain vs IOTA: Looking for a better alternative

... ...

For stability, Iraq needs to crack down on corruption

... ...

Videos

Latest News

Rugby-World Rugby announces dates for postponed women's World Cup

The postponed womens 2021 Rugby World Cup will now be held in New Zealand from Oct. 8 to Nov. 12 next year, the sports global governing body said in a statement on Wednesday. The tournament was originally scheduled for September and October...

GM labor dispute in Mexico sparks worry from U.S. lawmakers, global unions

U.S. lawmakers joined global labor advocacy groups on Tuesday in putting pressure on General Motors Co to ensure worker rights at its Silao plant in Mexico, after the automakers union there was accused of tampering with a worker vote. Mexic...

Venezuela's Guaido backs easing U.S. sanctions as incentive for elections

Venezuelan opposition leader Juan Guaido proposed on Tuesday a progressive lifting of U.S. sanctions as an incentive for President Nicolas Maduro to schedule free and fair elections with parties opposed to his government. Guaido, in a video...

42 killed in Colombia protests, human rights agency says

Forty-two people have died during anti-government protests that began two weeks ago amid discontent fueled by growing poverty and inequality during the pandemic, Colombias human rights ombudsman said Tuesday.The government agency added that...

Give Feedback