Sebi | File photo
Sebi on Thursday barred Profit Money Advisor and its proprietor from the securities market for carrying out unauthorised investment advisory activities.
Among other directions, Profit Money Advisor (PMA) and its proprietor Prateek Singh have been directed to cease and desist from acting as an investment advisor.
The interim directions come after the regulator prima facie found them violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as Investment Advisor (IA) regulations.
The entity was acting as an investment adviser without a certificate of registration from the regulator, as per an order.
Further, the regulator observed that PMA's claim to provide a specific monthly return on clients' investment, is, prima facie, an active concealment of the material fact that every investment in the market is subject to market risk.
This act of conveying specific monthly returns was for the purpose of luring customers into its net and thereby increasing its income, the watchdog said.
In its order, Sebi also directed them not to divert any funds raised from investors, kept in bank account(s) and/or in their custody.
Besides, they have been asked to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications etc. in relation to its investment advisory activity or any other activity in the securities market.
In case they have any open position in any exchange-traded derivative contracts, as on the date of the order, they can close out/ square off such open positions within three months or at the expiry of such contracts, whichever is earlier, as per the order.
The directions will be in force till further orders.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.