Policy · Agriculture & Food Systems
SEBI stops Growpital from raising investor money
By Startup Enthusiast ·
- Date
- Company
- Growpital
- What it does
- Farmland investment platform
- Kind
- Policy
- Founded
- 2020
What they do
Growpital sold farm investment plans in which investors became partners in LLPs and were promised 11% to 14% tax-free profits
What happened
In an interim order in January 2024, SEBI barred it, related firms and directors from collecting money or accessing markets
Why it matters
SEBI said the setup looked like an unregistered collective investment scheme and ordered it to stop floating any
The details
- SEBI passed an interim order against Growpital in late January 2024.
- It barred Growpital, its related entities and directors from the securities market.
- They were told to stop collecting money from investors, including through existing schemes.
- They were ordered to cease and desist from running any collective investment scheme.
- The order was to stay until further directions.
The bigger picture
- Investors became partners in LLPs named ZF Project 1, 2 and 3.
- SEBI found this looked like a collective investment scheme at first view.
- No entity had registered such a scheme with SEBI.
About the business
- Growpital offered farm investment plans online.
- It claimed fixed tax-free returns of 11% to 14%.
- It operated as Farm Silo Tech LLP.
What happens next
- SEBI kept investigating the scheme.