Ponzi schemes under SEBI's radar, 567 cases filed so far

Markets regulator SEBI has so far launched as many as 567 prosecution cases against those collecting public money through illegal investment schemes.

The entities have garnered funds through fraudulent investment schemes with promise of huge returns to investors. SEBI has clamped down on a number of illegal collective investment schemes (CIS) including entities from Saradha, MPS, Sumangal, MPS Greenery Developers, Sai Prasad, HBN, Alchemist Infra, Rose Valley groups and PACL.

As on July 31, the regulator has launched 567 prosecution cases for violation of CIS regulations, as per latest update available with the Securities and Exchange Board of India (SEBI).

These proceedings include attachment of bank and demat accounts, attachment of movable and immovable properties and appointment of receivers for management of attached properties. The regulator has been granted more powers through amendments in the SEBI Act to pass attachment orders and launch recovery proceedings against fraudsters and market manipulators, including those running illegal deposit schemes and those failing to pay penalties and other dues.

A special court is also hearing several cases, filed by the regulator, which would help fast-track prosecution and recovery proceedings against defaulters.