Sebi on Wednesday imposed a total fine of Rs 3.5 million on Zeestar Multi Club and Tours as well as its directors for illegally raising fund from investors through unregistered Collective Investment Scheme (CIS). The directors of Zeestar -- Mrinal Atal, Surendra Kumar and Shailendra Prasad Badoni -- were acting as directors of the company during the mobilisation of funds, Sebi said in an order. Sebi in an examination found that the firm and its directors in 2010 had offered schemes whereby the investors had to pay an initial amount towards the construction of cottages and other infrastructure for tourism purposes.
The company then promised to put such cottages on rent and had assured monthly reimbursement/ income to the investors. Noting that the scheme carried out by Zeestar constituted collective investment scheme, Sebi said the firm was carrying out CIS activities without obtaining a certificate of registration in accordance with the provisions of CIS regulations and thereby contravened CIS norms.
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