28 entities have been banned for at least four years from the securities market for raising illegal funds from the public, according to Sebi.
The cases involves two different companies -- Roofers Infra-Projects Ltd and Rahul Inn Hospitality Ltd -- mopping up more than Rs 74 crore by way of issuing secured redeemable non-convertible debentures in violation of regulations.
In separate orders, the watchdog has barred many entities apart from directing some of them to refund the money along with a specified interest to the investors.
Sebi has barred Roofers Infra-Projects Ltd and 20 other entities, including individuals. Similar quantum of punishment has been ordered in the case of Rahul Inn Hospitality Ltd and six others for at least four years.
An enquiry had found that Roofers Infra-Projects raised at least Rs 74.40 crore through issuance of secured redeemable non-convertible debentures during the period from 2009-10 to 2013-14.
The company along with some of the individuals have been directed to refund the money raised through issuance of the debentures, including the application amount, along with an annual interest of 15 per cent till the date of actual payment, Sebi said in an order dated October 6.
With respect to Rahul Inn Hospitality, a similar order directing refund of the money collected, about Rs 24 lakh, from investors was passed by the Securities and Exchange Board of India on October 9.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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