SEBI FINES PACL AND ITS DIRECTORS RS 7,269 CRORES FOR ILLEGAL RAISING OF FUND

SEBI FINES PACL AND ITS DIRECTORS RS 7,269 CRORES FOR ILLEGAL RAISING OF FUND

 

 This is the biggest ever fine by SEBI.

 PACL, formerly Pearl Agrotech Corporation, is in the business of realty and land development

PACL's four directors have also been fined for illegal and fraudulent mobilization of funds from the public.

SEBI has said the company deserves maximum penalty for such large-scale duping of the common man. 

SEBI SENDS STRONG MESSAGE TO CORPORATES

Through this massive fine SEBI has sought to send a strong message to the securities market at large, that such violations would not be viewed lightly.

                                     

The penalty follows another order by Sebi last year wherein PACL was asked to refund Rs 49,100 crore it had collected  through illicit schemes over a 15-year period. 

WHOOPING FINE OF RS 7269 CRORES

The Indian capital market regulator Sebi has slapped a fine of Rs 7,269 crore, its highest ever, on PACL and its directors for failing to register the company’s collective investment scheme that mopped up thousands of crore from small investors.

FOUR DIRECTORS WERE INDICTED

The four directors who have been pulled up by the regulator are Tarlochan Singh, Sukhdev Singh, Gurmeet Singh and Subrata Bhattacharya. The regulator alleged, in its order issued on Tuesday, alleged that the firm had mobilized Rs 2686 crore from September 01, 2013 to June 15, 2014.

ILLEGAL MONEY MOBILIZATION

"In the recent past, the country has suffered a lot in the hands of entities who indulge in such illegal money mobilization under various schemes, where in the hard earned money of the common man has been duped. Thus, imposition of deterent penalty is the need of the hour," SEBI said.