The 11 companies which have been issued showcause notices are Helios Plantation & Developers Ltd (Mumbai), Arrow Global Agrotech Ltd (Mumbai), DSJ Agrotech Ltd (Mumbai), Vijetha Agro Farms India Ltd (Guntur), Pagoda Forests Ltd (Mumbai), Green Gold Horticulure Ltd (Mumbai), Surbhi Forests India Ltd (Chandigarh), Vasundhra Marin Products Ltd (Gorakhpur), SPG Green Gold Plantations (New Delhi), Advantage Agro India Ltd (Lucknow) and Young Farmers Forests Ltd (Chandigarh). Sebi, which is currently drafting regulations for collective investment schemes, had earlier decided to undertake a special audit of 50 entities which are operating such schemes.

The audit is expected to give an insight into thefinancial affairs of these entities and the application of accounting principles by them, states a Sebi release. Reputed chartered accountants have been engaged and their reports on these companies are being received. "Some of the entities have refused to cooperate in the process of audit and Sebi is contemplating action against them, including barring them from accessing public funds and also in appropriate cases, initiating prosecution against them for non-compliance with Sebi's directions," states the Sebi release. "On the basis of the reply received from these entities and the reports of the auditors, further action would be initiated," it adds. Sebi is also in the process of identifying entities which continue to operate collective investment schemes without filing information with it. A public notice has been issued to caution the investors against such entities.