In a decisive enforcement action, the Securities and Exchange Board of India (Sebi) has imposed a monetary penalty of Rs. 50 lakh on Royal Twinkle Star Club Pvt. Ltd. (RTSCPL) and four of its directors for violating regulatory directives issued in 2014. Despite an explicit prohibition against raising public funds, the company continued collecting investor deposits, undermining the regulator's authority and compromising investor protection. Sebi rejected the defence put forth by the directors, citing lack of due diligence and sustained non-compliance.