Under Investment Advisers (IA) regulations, it is mandatory for IA to register with Sebi for providing services to the clients.
The regulator on a complaint conducted an investigation regarding the entities and found that it was providing investment tips to its clients and charged a fee promising good profits in investing in the Stock Indication. Besides the regulator noticed that it has collected over Rs 25.3 million in four bank accounts.
As the firm was not registered with the Sebi, it "prima-facie" violated IA norms, the regulator said.
Accordingly, apart from the ban, Securities Exchange and Board of India (Sebi) directed banks to not allow any withdrawals from the entities' accounts, without the regulator's permission.
In another order, the regulator banned 7 entities for the period of four years for fraudulent trading in the scrip of Partani Appliances by placing buy order higher than Last Traded Price (LTP) and thereby manipulating the scrip price.
The entities are Global Enterprises, Sajjan Kedia and Sankalp Garg among others.
In a separate order, Sebi fined Suvidha Securities Rs 5 lakh for failing to submit the required information sought by the regulator in the matter of siphoning of the initial public offering (IPO) proceeds of Ravi Kumar Distilleries.
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