GOVERNMENT OF INDIA
Ministry of Finance
(DEPARTMENT OF ECONOMIC AFFAIRS)
UNSTARRED QUESTION NO. 2030
TO BE ANSWERED ON TUESDAY, THE 8" DECEMBER, 2009
Drive against Plantation Firms
2030. SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state:
(a) whether Securities and Exchange Board of India (SEBI) has stepped up its drive against collective Investment schemes launched by various plantation firms;
(b) whether, the SEB} has estimated that the quantum of funds raised by such .entities could be around 3 lakh crores;
(c) whether SEBI had directed in 1998 that no existing collective investment schemes could mobilize money from public unless certified by credit rating agencies; and
(d) if so, the, number of defaulting companies identified and the action proposed by SEBI against them?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)
(a): SEBI had issued directions to 610 Collective Investment Scheme entities (CIS) to refund the money collected under the schemes.
(b) : No, Sir. As per SEBI's record, 664 entities had reportedly mobilized Rs. 3518 crore from the investors.
(c) Yes, Sir.
(d): According to SEBI 570 entities failed to wind up their schemes and repay the investors. SEBI had debarred these entities and the concerned officials from operating in the capital market for a period of 5 years. Further SEBI has requested Chief Secretaries of the concerned State Governments to initiate Civil/Criminal action against these entities for apparent offences of fraud and the Ministry of .Corporate Affairs to initiate the winding up process of these CIS entities under Section 433 of the Companies Act. Criminal prosecution cases have been launched by SEBI against 551 CIS entities.