Sebi bans individual from securities mkt for flouting regulatory norms

Capital markets regulator Sebi has barred an individual from the securities markets for a period of five years as well as slapped a fine of Rs 30 lakh for flouting regulatory norms.

Besides, the regulator restrained Mohit Manghnani (proprietor of Wealthit Global) from associating himself as a director or key managerial personnel with any listed public company or any Sebi-registered intermediary for a period of five years.

Sebi also directed Manghnani to resolve all complaints received through the regulator's SCORES portal within a period of three months.

The order came after the markets watchdog had passed an ex parte order against Manghnani and the latter approached the Securities Appellate Tribunal (SAT), which remanded the matter back to Sebi and directed the regulator to pass a fresh order.

In its order passed on Friday, the regulator found that the noticee (Manghnani) did not cooperate with Sebi during the inspection and deceived its clients by not disclosing the information as regards change in the address and stopping of business.

Further, the noticee made promises of assured and unrealistic returns to clients and has sold non-suitable services and charged exorbitant fees from its clients, thereby violating the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules and IA (Investment Adviser) norms.

Sebi also noted that 53 complaints were pending against the noticee since September 2018, and Manghnani has not taken any steps whatsoever to resolve the same. Therefore, the noticee has flouted the provisions of IA regulation.

Accordingly, the regulator has debarred Mohit Manghnani from accessing or dealing in the securities markets for a period of five years from the date of this order or till the expiry of 5 years from the date of resolution of complaints, whichever is later.

As per Sebi, the noticee had collected Rs 7.30 crore received from the clients/ investors/ complainant on or after April 1, 2018, as fees or consideration or in any other form in respect to the investment advisory activities.

In two separate orders passed on Friday, the regulator suspended the registration of two brokerage houses -- Indian Portfolio Ltd and Sincere Commodities and Derivatives Markets -- for their involvement in illegal paired contracts on the now-defunct National Spot Exchange Ltd (NSEL).