Sebi slaps Rs 1 crore fine on Imbowers Housing

NEW DELHI: Capital markets regulator Sebi today imposed a penalty of Rs 1 crore on Imbowers Housing and Infrastructure after finding it raising illegal funds from investors.

The Securities and Exchange Board of India (Sebi) received a complaint alleging Imbowers was operating schemes and raised funds from investors through such plans.

A Sebi probe found that Imbowers was accepting money from public through its 'development and trading of land' scheme without obtaining regulatory approval.

Further, Sebi sought information from the company with regard to its schemes, funds mobilised, among others and in its submission, Imbowers said it is not doing any business in the nature of collective investment schemes (CIS).

However, the company failed to provide the complete information sought by the regulator.

"Imbowers has failed to provide sufficient information to Sebi despite repeated efforts made by Sebi to contact and seek information from the noticee (Imbowers) and thus, has not cooperated with Sebi in examination of the matter," Adjudicating Officer Atif Alvi said in the order.

"Further, no evidence has been produced by Imbowers indicating that it has stopped mobilizing funds under its CIS. Hence, I am of the view that default by the notice is repetitive in nature," he added.

In a separate case, Sebi slapped a fine totalling Rs 59 lakh on 10 individuals for allegedly indulging in fraudulent trading in the shares of Harita Seating Systems.

The monetary penalty have been found on the basis of number of manipulative and irregular synchronized trades executed by these individuals, artificial volumes created and their contribution to price rise.

These entities indulged in synchronised trades and significantly created artificial volume in the shares of Harita Seating Systems.