Markets regulator SEBI has barred Moneytree Research and its proprietor Narendra Madan Rathod from the securities markets for three years for providing unauthorised investment services.
The order came after SEBI received a complaint against Moneytree and Rathod. Thereafter, the regulator examined the matter and subsequently issued a show-cause notice to Moneytree Research and Rathod in August 2021.
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Moneytree Research and Rathod are collectively referred to as noticees.
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In its order, the regulator found that noticees was never registered with SEBI in any capacity as an intermediary.
By operating as an "investment adviser", without obtaining a registration from the Securities and Exchange Board of India, the regulator found that noticees have violated the IA (Investment Adviser) rules.
The noticees had received a total amount of Rs 41.07 lakh during June 2017 to November 2018, SEBI said in its order passed on Friday.
SEBI has directed the noticees to refund within three months the money received from investors, in respect of their unregistered investment advisory activities.
Also, the regulator has debarred the noticees from accessing as well as dealing in the securities markets for a period of three years from the date of completion of refunds to clients, along with depositing of the balance amount with SEBI, whichever is later.
In addition, the noticees shall not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from the regulator, either directly or indirectly, during or after the expiry of the debarment period, the order said.
In a separate order, SEBI slapped penalties totalling Rs 30 lakh on five individuals for manipulating the share price of Exdon Trading Company.
The regulator slapped fines in the range of Rs 5 lakh to Rs 10 lakh on five individuals. These individuals are collectively referred to as noticees.
The order came after the Securities Appellate Tribunal in its June 2021 ruling set aside a SEBI order passed in May 2019 in respect of nine entities, including the noticees, imposing a penalty of Rs 30 lakh on noticees and directed market watchdog to decide the matter afresh on merits.
Earlier, SEBI had investigated to ascertain any violation of the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms in trading by certain entities in the scrip of Exdon from May 2013 to March 2015.
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