Description

SEBI restrains Citrus Check Inns Limited and four directors from accessing securities market and prohibits them from dealing in securities until all monies mobilized through Collective Investment Schemes are refunded to investors.

Summary

SEBI has issued a final order (WTM/AN/IVD/ID5/31715/2025-26) dated October 09, 2025, restraining Citrus Check Inns Limited and four of its directors from accessing the securities market. The entities are prohibited from buying, selling, or otherwise dealing in securities until all monies mobilized through Collective Investment Schemes are refunded to investors. This action follows findings that Citrus was operating an unregistered collective investment scheme in violation of SEBI regulations.

Key Points

  • SEBI received a complaint on January 17, 2014 alleging Citrus Check Inns Limited was running a “Ponzi Scheme” and refusing refunds to investors
  • SEBI found that Citrus mobilized funds through collective investment schemes without obtaining required registration under Section 12(1B) of SEBI Act and Regulation 3 of CIS Regulations
  • Five entities are restrained: Citrus Check Inns Limited (CIN: U55101MH2011PLC222394), Omprakash Basantlal Goenka (PAN: AECPG3854J), Prakash Ganpat Utekar (PAN: AALPU9100E), Venkatraman Natrajan (PAN: ACUPV4686K), and Narayan Shivram Kotnis (PAN: ABIPK5022D)
  • An interim order was previously passed on June 03, 2015 directing the entities not to collect fresh money, launch new schemes, dispose of assets, or divert funds raised from public
  • NSE members are advised to take note and ensure compliance with the debarment

Regulatory Changes

No new regulatory changes introduced. This circular enforces existing provisions under Sections 11(1), 11(4), and 11B of the SEBI Act, 1992 regarding operation of unregistered collective investment schemes.

Compliance Requirements

  • NSE members must note the debarred entities and ensure they do not facilitate any securities market access for these entities
  • The restrained entities cannot access securities market or deal in securities until investor refunds are completed
  • Members can refer to the consolidated list of debarred entities available at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
  • For queries, members should contact NSE at dl-invsg-all@nse.co.in

Important Dates

  • October 09, 2025: Date of SEBI final order (WTM/AN/IVD/ID5/31715/2025-26)
  • October 09, 2025: NSE circular issued (Ref No: 518/2025)
  • June 03, 2015: Date of interim ex-parte order
  • January 17, 2014: Date of original complaint received by SEBI

Impact Assessment

Market Impact: Limited direct impact on listed securities markets as this pertains to an unlisted company operating illegal collective investment schemes. However, serves as a reminder of regulatory enforcement against unregistered investment schemes.

Investor Impact: Investors who participated in Citrus Check Inns’ schemes remain affected until refunds are processed. The market access ban ensures these entities cannot continue mobilizing funds.

Operational Impact: NSE members and market participants must update their compliance systems to block transactions for the five debarred entities. The consolidated debarred entities list on NSE website provides ongoing reference for compliance.

Regulatory Significance: Demonstrates SEBI’s continued enforcement against Ponzi schemes and unregistered collective investment schemes, reinforcing investor protection measures and registration requirements for fund mobilization activities.

Impact Justification

High severity enforcement action against specific entities running illegal CIS, but limited broader market impact as it affects only investors of this unlisted scheme. Important for regulatory compliance awareness but low systemic impact.