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Sebi has barredSai Proficient Investment Advisory and its proprietor Meeshika Vishwakarma from accessing capital markets till further orders for its failure to furnish information related to its activity as an investment advisor for inspection, among other violations.
Sebi, in its interim order passed on Tuesday, said Sai Proficient and its Proprietor Meeshika Vishwakarma are directed to cease and desist from acting as an investment advisor.
Further,it was observed that Sai Proficient had not resolved the investor grievances as per Sebi's prescribed timelines and not cooperated with the watchdog.
The modus operandi adopted by Investment Advisor (IA), prima facie, shows that IA was not practicing investment advisory in the manner envisaged under the IA Regulations, which essentially would involve advising the client considering his/ her financial situation, risk appetite, among others, Sebi said.
After that, Sai Proficient prima facie running a scheme and defrauding its clients, with an intention to maximize its income through advisory fees by employing the above-said devices, without caring for client's needs and keeping its interest ahead of its client's interest, it added.
By doing so, they violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms and Investment Advisor (IA) regulations.
Accordingly, they have been asked not to divert any funds raised from investors, kept in bank account(s) or in their custody.
Besides, they are directed to immediately withdraw and remove all advertisements, representations, literature, brochures, materials, publications, documents, communications in digital mode or otherwise, about its investment advisory activity or any other activity in the securities market.
Separately on Wednesday, the regulatorlevied a fine of Rs 10 lakhon Nandanvan Commercial Pvt Ltd for carrying out the transfer of shares through off-market without receipt of consideration while dealing with the shares ofUrja Global Ltd.
Through four separate orders passed on Wednesday, four entities-- Coronet Vyapaar Pvt Ltd, Cosmos Builders, Jai Ambey Wire Pvt Ltd and Kalika Steel Alloys Pvt Ltd settled with Sebi cases of alleged fraudulent trading in illiquid stock options segment on the BSE.
As per the orders, Coronet Vyapaar Pvt Ltd and Cosmos Builders settled cases by paying Rs 10.07 lakh and Rs 8.52 lakh, respectively, towards settlement fees.
Meanwhile, Jai Ambey Wire Pvt Ltd and Kalika Steel Alloys Pvt Ltd have paid Rs 11.62 lakh and 27.12 lakh respectively towards settlement charges.
(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.)
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First Published: Wed, February 10 2021. 20:16 IST