A court here has convicted a private company and its three directors in an over 23-year-old case under the SEBI Act and Collective Investment Scheme (CIS) regulations, saying they trapped innocent people by promising them unrealistic returns.
Additional Sessions Judge Vandana Jain was hearing a 2001 case against Kisley Plantation Ltd, a company in East Patel Nagar, and its directors against whom SEBI had registered a case.
According to the Securities and Exchange Board of India, the company was running a CIS and raised an aggregate amount of around Rs 2.43 crore from the general public, without registering with the regulatory body, while promising high returns and fiscal incentives.
In its order dated October 8, the court said, “It has been proved beyond reasonable doubt that accused no.1 (Kisley Plantation) floated Collective Investment Schemes while there was a complete embargo under Section 12 (1B) of SEBI Act to launch any such scheme.”
The section deals with obtaining a mandat
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