However, Max Capital on its website claimed to offer investment advice related to investing in, purchasing and selling of securities, as well as offering various services packages for subscription to avail its services, it added.
"Thus, I prima facie, find that Max Capital has induced the public in general to deal in securities by availing its unregistered services," Sebi
Whole Time Member Madhabi Puri Buch said in an interim order on Friday.
Through the unauthorised advisory services, the entities have collected Rs 1.55 crore from investors.
By indulging in such activities, they prima facie, violated the provisions of Investment Advisory Regulations, Sebi
Accordingly, the regulator has directed Max Capital and its proprietor Tillore to "cease and desist" from acting as investment advisors including directly or indirectly, until further orders. Also, they have been directed not to divert any funds collected from investors. Besides, they have been barred from disposing of or alienating any assets, whether movable or immovable without the prior permission of Sebi.
Further, they have been asked to immediately withdraw and remove all advertisements, literatures and brochures, among others in relation to their investment advisory activity.
The directions will come into effect immediately and will be in force until further orders, Sebi said.