Sebi bans NGHI Dev money collection

Market watchdog Sebi has banned Jaipur-based NGHI Developers from collecting money from investors and accessing the capital market. “NGHI Developers India Limited shall immediately stop collecting money,directly or indirectly,from investors under the plans or schemes offered by it...or launch any such further plans or schemes in the nature of a ‘collective investment scheme,” Sebi said in an order yesterday. The company was collecting funds from the public for developing plots of land through its plans. Sebi said,prima facie,it appears that NGHI is related to another company Nicer Green Forests Limited which is under the regulator’s probe. The Securities and Exchange Board of India (Sebi) found that the company was substituting Nicer Green’s investment certificates with the NGHI bonds. It appears that NGHI promoters and directors Pipal Singh and Bakshish Singh,are using the company as a vehicle to subvert the Sebi order against Nicer Green,it said. “NGHI has also been prima facie found to be launching ‘collective investment schemes’ in violation of the provisions of the Sebi Act,1992,” it added. “NGHI,its promoters and directors are prohibited from buying,selling or otherwise dealing in the securities and are restrained from accessing the securities market,directly or indirectly,” Sebi said. It has directed that the money collected from investors under various schemes by NGHI should be deposited in a separate bank account within 3 days from the date of the order.