Following several complaints from investors, Sebi had conducted an examination and observed that Nicer Green Housing was engaged in the mobilization of funds from the public during 2009-10 and 2010-11 under its scheme — purchase and development of agricultural land under cash down payment plan/instalment payment plan.
The scheme was in the nature of a collective investment scheme (CIS), the regulator said in an order.
It also noted that the company had launched a CIS without obtaining registration from Securities and Exchange Board of India.
The individuals were the directors of the company at the time when it was engaged in the illegal fund mobilising activity by floating unauthorised CIS.
While imposing the fine Sebi said, it is also important to mention that the company had collected significant quantum of money from the public at large canvassing their schemes for earning profit through an unregistered CIS.
Further, in the peculiar facts and circumstances of this case the default has occurred not due to any ignorance of the noticees, but with their full intention and considering the quantum of money raised through the illegal schemes, the default is grave and the gravity of this matter cannot be ignored, it added.
By doing so, the company and individuals violated the provisions of Collective Investment Schemes (CIS) Regulations, and accordingly, Sebi levied a fine of Rs 70 lakh, payable jointly or severally.