Capital markets regulator Sebi on Thursday barred three entities, including Investocare Financial Research, from the securities markets for varying periods for providing unregistered investment advisory services.
An individual -- Ramesh Babu -- has been restrained for 2 years till the expiry of the period from the date of completion of refunds to investors, while Investocare and its proprietor Ravish Kandhari were debarred for one year from the securities markets.
The markets watchdog has also asked Ramesh Babu to refund investors' money collected through unregistered investment advisory services within three months.
As per Sebi, Investocare and its proprietor provided advisory services without holding the mandatory certificate of registration by the market regulator.
Ramesh Babu had received Rs 60.94 lakh in his account from November 2015 to July 2021, for the investment advisory services provided by Investocare, thereby violating the provisions of IA (Investment Advisers) rules, the regulator said.
Accordingly, Sebi slapped a fine of Rs 2 lakh on Investocare and its proprietor Kandhari, and Rs 4 lakh on Ramesh Babu.
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The order came after Sebi received a complaint on January 2021, thereafter, it conducted an examination of the activities of Investocare Financial Research, which is a sole proprietorship of Kandhari.
Meanwhile, in eight separate orders, the regulator has levied penalties totalling Rs 40 lakh on 8 entities for indulging in non-genuine trades in the illiquid stock options segment on BSE.
The regulator slapped a fine of Rs 5 lakh each on Jyotiraditya Vincom, Jatashiv Commercial, Haricharan Projects, Heaven Tradelink, Heema Infocom, Hooghly Jiute Mills, Jayanti Singh and Raaghav Sarraf.
Sebi observed a large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volumes on the bourse.
Thereafter, the regulator conducted an investigation into the trading activities of certain entities engaged in the segment on BSE from April 2014 to September 2015.
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