Sebi warns public against illicit money pooling schemes

MUMBAI: Market regulator Sebi has cautioned investors not to invest in schemes offered by entities barred by it from raising money.

"Certain collective investment Schemes (CIS) have come to the notice of Sebi, which are offered by entities which are not registered with SEBI nor offer document of such schemes have been filed with Sebi.Appropriate actions have been taken against such entities and its directors," Sebi said in a statement posted on its website.

Since January 1,2011,the regulator has barred 91 entities and its directors from carrying on unregistered CIS.Some of the entities include Sun-plant agro,NGHI Developers India,MPS Greenery Developers,Nicer Green Forest and Maitreya Services among others.

There is only one entity -- GIFT Collective Investment Management --that is registered with Sebi as a CIS.

The regulator said before investing in a CIS scheme,investors should check whether the entity is registered with Sebi,its schemes have filed an offer document and subscriptions to its units are done through the banking channel and not through cash transactions.If investors comes across entities who have been barred mobilizing money they should report the same to Sebi and police authorities immediately with appropriate details.