PGFL restrained from securities market for 10 years

Mumbai, Sep 17 (UNI) Securities and Exchange Board of India today restrainted M/s PGF Limited (PGFL), a Chandigarh-based public limited company, from accessing securites market either directly and indirectly for ten years.

The Company has been involved in operating Collective Investment Schemes (CIS) without seeking registration with SEBI.

PGFL has mobilised huge amount of funds from thousands of innocent investors under its schemes, a SEBI release said here today .

SEBI wholetime Member T C Nair, in an order has restrained PGFL, its promoters, its directors and its persons-in-charge of the business of all its schemes from accessing the securities market either directly or indirectly. They have also prohibited buying, selling or otherwise dealing in securities, in any manner whatsoever, for a period of 10 years.

Earlier, vide order dated December 6, 2002, Chairman, SEBI had inter-alia directed PGFL neither to collect any money from investors nor to launch any new schemes. The company was further directed to refund the money collected under the scheme(s) with returns due to investors as per the terms of the offer failing which actions under the SEBI Act, 1992 and the SEBI (Collective Investment Scheme) Regulations, 1999 as deemed fit were to be initiated against it.

Since the company failed to comply with the aforesaid directions dated December 6, 2002 and its conduct was found to detrimental to the interest of investors at large, the order was pronounced, the release said.

UNI VK SR NP1908