Sebi today barred CapitalVia Global Research and its three directors from underaking any new advisory business for failing to comply with KYC requirements and not following the risk profiling procedure of client.
The move follows a complaint that Sebi receieved against the company alleging "CapitalVia charged a fee of Rs 25 lakh for their services rendered, wherein they promised an assured return of 10 per cent".
A Sebi probe found that CapitalVia failed to comply with regulatory requirements prescribed in Investment Advisers Regulations such as Know Your Client (KYC) requirements, risk profiling, suitability of the advice and maintenance of records, segregating investment advisory and execution services and compliance with qualification and certification requirements.
"I find that prima facie CapitalVia and its directors have failed to act in accordance with the requirements of the Sebi Act, Investment Advisers Regulations... I also find that they failed to resolve many complaints of investors/clients despite several reminders from Sebi," Sebi whole time member S Raman said in an order.
Accordingly, Sebi has directed "CapitalVia and its directors -- Kiran Ravindra Kumar Choudhary, Rohit Gadia and Anshul Mansingka -- not to solicit or undertake any fresh advisory business with immediate effect till further directions".
It also asked them to redress the grievances received against CapitalVia and comply with all provisions of Investment Advisers regulations and submit a compliance report to Sebi within three months.
Disclaimer: No Business Standard Journalist was involved in creation of this content
