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Lavanya (nil)     27 October 2014

Invested money in company,not registered with sebi& rbi

i have invested some amount in public limited company registered under Ministry of corporate affairs. by share act ,company issue its Own shares to known people in the Public and distribute the dividend to the share holders in multifold.
( Ex : 25,000 deposited, returns -2000*36( month)=72,000 rs)
Now the company bank accounts are sealed and complaints are registered under economic crime branch due to company not registered under SEBI & RBI .

 will i get my returns or not ?

whether company can be closed only because its not registered under SEBI& RBI ?



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 1 Replies

Adv.Vinod Patil (Lawyer)     01 November 2014

Before starting any Company, company has to be registered as per companies act, 1956. but if company running banking business without taking mandatory permission from RBI then company is illegal and SEBI assured that company is doing business like money circulation etc. then they will ban company and also resist to take further investment from public,  In whole scenario, investors suffers so much. you will get your money after court decision but it requires so much time.


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