The Securities and Exchange Board of India (SEBI) has cautioned the investors to be aware of collective investment schemes (CIS).
Recently, publishing advertisements in all the national and regional newspapers and media, the Securities and Exchange Board of India (SEBI) has cautioned investors to keep away from those who offer collective investment schemes (CIS).
Most of the CISs are not registered with us, SEBI stated. The market regulator has recently found that some firms have come up with advertisements for their CIS schemes.
Their advertisements were mainly meant to re-boost the sentiments of the investors whose sentiments were actually hurt by the Saradha scam. This multi-crore scam was sufficient enough for the investors to leave all such forms of investment.
As the investors decided to skip their investments, the investment firms decided to come up with ads. Seeing this, SEBI has advertised against them stating that they are not registered.
The advertisements of SEBI has mentioned the names like Vibgyor Gold, Vibgyor Allied Infrastructure, Rose Valley Real Estate and Construction, Prayag Group, MPS Greenery Developers, iCore, Jasoda Real Estate and Aspen Projects.
Special reference is given to MPS group and Rose Valley group. The investors are cautioned not to have any investment with these two firms as both of them are unregistered.
Unlike other forms of investments, CIS are presented to offer higher returns. However these are not secured. Mostly the returns are provided from the investment of the other investors.
The SEBI-ads clearly state that they are offered with no guarantee or safety. Thus it asks the investors to be away from such forms of investments.
Challenging the SEBI order, the Rose Valley group has moved to the Calcutta HC, which is yet to give the verdict. The HC has recently completed its hearing on the issue.