Mumbai, Nov 7 () : Now, a goat scam has emerged and SEBI is on the hunt for the directors of Beetel livestock and farm who started this innovative scheme.
This started a few years back when the company issued advertisements saying it owned goat rearing farms in North India and that for a few thousand rupees they could get 2% of the investment every month for years together. The logic was simple. Invest in a goat. The rearing expense is taken care of by Beetel. Every month you get 2% of the investment. How is this possible?
Each goat gives birth to 3-4 young ones. This in turn is bought by other investors and the never-ending cycle goes on. The economics were fine but SEBI says this comes under Collective Investment Scheme (CIS) and it has to be registered with the regulator.
SEBI says it got complaints and so decided to send showcause notices. Predictably Beetel’s four directors did not accept the notices and came back undelivered. It now has issued advertisements in newspapers asking these directors to come and take the showcause notice or face legal action ex parte. If the goats are in farms, then rearing them will be a problem since Beetel directors might have absconded. Unlike in the emu scam, the investment here is not much and disposal of goats is not difficult.
SEBI has been asking the Govt to bring in a law to punish such offenders. Rajiv Gandhi Equity Services Scheme was launched to wean away public from such schemes and bring them to stock markets.
SEBI is also bringing forth a law to rein in the unregistered pawnbrokers and those listed companies dealing with gold loans. No proper certificate or loan agreement is executed and instead only receipts are issued which courts reject. Without notice, the pledged gold is sold in an auction.