Sebi clamps down on 8 entities for cheating investors

Regulator Sebi today clamped down on eight entities for cheating investors through fake websites presenting themselves as registered market intermediaries.
Pending detailed probe into the matter, the Sebi has barred -- Tradefast Securities, Good Time Securities, Global Securities and Finosys Securities -- from the securities market as well prohibited them to raise money from investors, among others, till further orders.
Besides, the restrictions have also been imposed on partners of Finosys Securities and Reliable Securities -- Vaibhav Gandhi, Amit Gandhi and Asha Gandhi.
An initial probe by the Securities and Exchange Board of India (Sebi) found the entities were claiming themselves to be stock brokers and depository participants through their respective websites.

The regulator said that these websites are "misguiding" and the details provided on them "false".
"I find that Finosys, Reliable, Goodtime, Global, Tradefast, Vaibhav Gandhi, Amit Gandhi and Asha Gandhi made unrealistic claims and false claims on the website...And by nature of these acts and omissions, they tried to solicit, entice and induce investors to deal in securities," Sebi whole time member Rajeev Kumar Agarwal said.

Besides capital market ban, Sebi has also asked the entities to "cease and desist" from undertaking any activity in securities and immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites in relation to the capital markets.

"I am convinced that this is a case where effective and expeditious action is required to be taken not only to prevent any further harm to investors but also to send a stern message to prevent any person from indulging in acts as observed in this case," Sebi ruling said.
The market regulator had initiated probe after receiving complaints that alleged these entities of "cheating and maintaining fake websites".