Sebi imposes Rs 27.50 lakh fine on Shree Sai Spaces, directors

Sebi imposes Rs 27.50 lakh fine on Shree Sai Spaces, directors
06/04/2018 , by , in News/Views

Markets regulator Sebi imposed a penalty of Rs 27.50 lakh on Shree Sai Spaces Creations and its five directors for illegally launching a collective investment scheme (CIS).

Shree Sai Spaces Creations Ltd (SSSCL) collected Rs 3.95 crore from 3,080 investors for the proposed development of a solar energy project.

In an order, Sebi said SSSCL’s scheme satisfied all the ingredients of being a CIS and to carry on the same required necessary registration from the regulator.

“SSSCL and its directors launched a CIS Scheme without obtaining certificate of registration from Sebi, thereby violated the provisions of … Sebi Act and … CIS Regulations,” the watchdog said.

For the violation, while SSSCL and its four directors — Suresh Lal Shrivastav, Laxmi Suresh Lal Shrivastav, Ritesh Kumar Shrivastav and Vivek Kumar Shrivastav — have to pay a fine of Rs 25 lakh “jointly and severally”, one other director — Rajkumar Laxman Konde — has to pay Rs 2.50 lakh.

“It is also matter of record that noticee no 6 (Rajkumar Laxman Konde) was director of SSSCL for nine months during August 8, 2012 to May 6, 2013, hence, he is responsible for conduct of SSSCL during such period only,” the Securities and Exchange Board of India (Sebi) said.


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