Sebi bans person from securities market in unauthorised investment advisory services case

Regulator Sebi on Wednesday barred an individual from the securities markets for three years for providing unauthorised investment advisory services and directed him to refund investors’ money within three months. In two separate orders, Sebi found that Manish Lalwani, proprietor of Capital Yield Research and Advisory as well as Secure Investor Investment Advisory, was engaged in the business of providing investment advice to the public in lieu of monetary consideration and was thus acting as an ‘investment advisor’.

However, he was not holding any certificate of registration from Sebi to act as investment advisor (IA) and through such acts, he violated the provisions of IA norms, it added.

Lalwani collected funds by providing unregistered investment advice to investors through his proprietary firm Capital Yield Research and Advisory from December 2015 to September 2016. Thereafter, he mobilised capital through his proprietary firm Secure Investor Investment Advisory between August 2016 and July 2017.

Sebi noted that Lalwani is liable to refund Rs 21.34 lakh and Rs 31.75 lakh as proprietorsof Capital Yield Research and Advisory and Secure Investor Investment Advisory, respectively.

In its order, the Securities and Exchange Board of India (Sebi) directed Lalwani to refund within three months the money received from investors as fees in respect of his unregistered investment advisory activities.

He has been prohibited from accessing as well as dealing in the securities market directly or indirectly in any manner for a period of three years “from the date of this order or till the expiry of three years from the date of completion of refunds to investors… whichever is later.”

In addition, he has been restrained from selling their properties, securities and mutual fund holdings except for the sole purpose of making the refunds.