New Delhi, Markets regulator Sebi on Tuesday barred two individuals and two entities from the securities market for providing advisory services without market regulator’s authorisation. The regulator has restrained Core Investment (proprietor Deepak Bamne) and Core Group (proprietor Matwar Mehra) from securities markets for three years.
The direction came after Sebi received a complaint against the entities for not making payout in respect of the investments made by the complainant.
Sebi conducted an examination in the matter and issued an ad-interim ex parte order-cum-show-cause notice dated November 26, 2019 against the entities and directed them to cease and desist from holding out/acting as investment advisor and research analyst and further prohibited them from the securities markets until further orders.
The regulator found that both the entities and their proprietors were engaged in providing investment advisory services without obtaining a certificate of registration from Sebi as an investment adviser, which violates IA (Investment Adviser) regulations.
The amount of money prima facie to have been collected by the entities was Rs 76.23 lakh, Sebi said in the order.
The regulator directed them to refund within three months the money received from investors (jointly and severally) as fees in respect of their unregistered investment advisory activities.
They have also been restrained from accessing as well as dealing in securities markets directly or indirectly in any manner for three years from the date of this order or till the expiry of three years from the date of completion of refunds to the investors.
In addition, they shall not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from Sebi either directly or indirectly during or after the expiry of the debarment period.
Meanwhile, in a separate order, the regulator slapped a fine of Rs 10 lakh on 9 entities for violating regulatory norms in the matter of SI Capital and Finance Services Ltd.
In another order, Sebi imposed a fine of Rs 5 lakh on an individual for indulging in fraudulent practices in the preferential allotment of shares of
shares.
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