The Collective Investment Scheme (CIS) operated through the ...

Growpital's Unregistered Investment Scheme Halted for Violating SEBI Rules; Freeze on Accounts and Asset Disposal Ordered.

August 16, 2024

Case Laws SEBI Board

The Collective Investment Scheme (CIS) operated through the Growpital platform prima facie violates provisions of the SEBI Act, CIS Regulations, and SEBI-PFUTP Regulations. The activities indicate an unregistered CIS mobilizing over Rs. 132 crore in ZF Project 1 LLP alone, amounting to a fraudulent practice under Regulation 4(2)(t) of PFUTP Regulations. To safeguard investors' interests, an ad-interim ex-parte order directs Growpital and its directors/partners to cease soliciting or undertaking CIS activities, not collect funds, not divert existing funds, not dispose assets without SEBI's permission, provide asset inventory, remove CIS-related materials, not access securities market, and submit investor details. Cashfree Payments, banks, depositories, and RTAs are directed to freeze accounts and disallow transfers. The order aims to prevent further fund mobilization through the unregistered platform.

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The Collective Investment Scheme (CIS) operated through the ...

Growpital's Unregistered Investment Scheme Halted for Violating SEBI Rules; Freeze on Accounts and Asset Disposal Ordered.

August 16, 2024

Case Laws SEBI Board

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