On 11thMay, market regulator SEBI (Securities and Exchange Board of India) has ordered MPS Greenery Developers Ltd to wind up its existing collective investment schemes (CIS) with immediate effect.
The SEBI has directed MPS Greenery to deposit the funds — mobilised under such schemes —totalling Rs. 1,169.39 crore with a nationalised bank in an interest bearing escrow account. The amount should be deposited within 15 days from 11th May.
Kolkata-based MPS Greenery has been mobilising funds under CIS through instruments such as teak-bond, orchard-bond and agro bond, etc. Most of these bonds offered high returns against small investments.
SEBI in its recent order said, “MPS should deposit the amount of Rs. 1,169.39 crore,which it has raised through its collective investment schemes, without obtaining Certificate of Registration and in contravention of the conditions imposed under the provisional registration granted by SEBI in August 2009.”
The regulator further instructed MPS not to collect any money from investors or to launch any scheme; or to dispose of the properties of the scheme acquired in violation of the provisions of SEBI (Collective Investment Schemes)Regulations, 1999.
The regulator has also “prohibited from operating in the capital market and from accessing the capital market till such time MPS Greenery Developers Ltd deposits the amount of Rs. 1169.39 crore in an escrow account with a nationalised bank.”