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Markets regulator Sebi today barred Capquest Research and its three directors from acting as investment advisers for providing unauthorised trading tips to investors.
In its preliminary examination, Sebi found that Capquest Research Pvt Ltd (CRPL) and its promoters/directors — Gitesh Malik, Shashanka Sharma and Prashant Kumar -- were offering stock, index and derivative tips through various plans and soliciting clients under different schemes.
CRPL was seen assuring guaranteed return on execution of its stock tips and providing assurance of 90 per cent accuracy of its tips on its website, the Securities and Exchange Board of India (Sebi) noted.
"It is felt inevitable that as an urgent preventive measure to protect the interest of investors, an ex-parte ad- interim order is passed against CRPL with immediate effect, to ensure that it does not continue any further with its investment advisory business," Sebi Whole Time Member G Mahalingam said in an order.
Accordingly, Sebi has ordered the company and its directors to 'cease and desist' from acting as an investment advisor. Also, they have been barred from diverting any funds raised from investors.
They have been directed to "immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, website etc in relation to his investment advisory and research analyst activity or any unregistered activity in the securities market".
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