Sebi cracks down on SMS tipsters

Regulator barred Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala from access capital markets

Market regulator Securities and Exchange Board of India (Sebi) today took action against entities involved in circulating market tips and stock advisory through mobile SMSs.

The regulator barred Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala from access the capital markets. Sebi's preliminary investigation revealed that these individuals were providing investment advice on through their proprietary concerns---Right Trade, Sai Traders, Bull Trader and Laxmi Traders without being registered with Sebi.

“The entities had also made misrepresentations by making unrealistic claims, false statements such as having office in various countries, FII based calls, jackpot calls, etc., and they also made representation in reckless and careless manner...”Sebi said.

Sebi has directed all the entities involved to desist from acting as investment advisors and portfolio managers. Also, they have been asked to withdraw all advertisements and literatures from their websites and other publications.