Pancard Club case: SEBI imposes fine of 20 crore on four directors for illegally raising funds

Pancard Club case: SEBI imposes fine of 20 crore on four directors for illegally raising funds

New Delhi. Capital market regulator Securities and Exchange Board of India ( SEBI ) Pancard ClubsAnd on Friday four of its directors were fined a total of Rs 20 crore for illegally raising money from investors through Unregistered Collective Investment Schemes (CIS). SEBI said in an order that the company is part of the Panaromic Group of Companies, which is interested in hospitality, timeshare, travel and tourism and information technology. SEBI said that these bodies are jointly and severely liable to pay the penalty amount. The directors of the company include Manish Kalidas Gandhi, Chandrasen Ganpatrao Bhise, Ramachandran Ramakrishnan and Shobha Ratnakar Burde. SEBI found during an investigation that the company was involved in raising funds from investors without necessarily obtaining the requisite approval from the regulator under the Group Investment Scheme Regulations.

SEBI has fined the company and its directors for violating these market provisions. SEBI has given 45 days to pay the penalty amount. If the company and its directors are unable to make the payment within the deadline, then the process of recovery from them can be started. Sebi said in a separate order on Friday that a total of 1 on 16 persons for misrepresentation of shares of Parish Investment Limited (PIL) and trading fraudulently. A fine of Rs 20 crore has been imposed. SEBI said that the trading of PIL's shares conducted during July 21, 2010 to August 30, 2011 in this case was investigated. The investigation found that the involved persons were directly or indirectly linked. Together they carried out fraudulent business. On this basis, SEBI decided to impose a fine of Rs 10 lakh on eight of these persons and Rs five lakh on the remaining eight persons.