SEBI on Thursday imposed a ban of three years on two individuals and two entities from the securities markets for providing investment advisory services without market regulator's authorisation.
The regulator has restrained Innovative Research, proprietor Hasmukh Malvi and Innovative Financial Research and its proprietor Raja Singh from securities markets for three years.
Innovative Research, Hasmukh Malvi, Innovative Financial Research and Raja Singh are collectively referred to as noticees.
The direction came after SEBI conducted an examination in the matter and thereafter issued a show-cause notice to noticees in July 2021.
The regulator found that the noticees carried out investment advisory activities and held themselves out as an 'investment adviser' without obtaining a certificate of registration from Securities and Exchange Board of India.
The notices have collected Rs 1.81 crore during the period from June 2016 to March 2019.
SEBI directed the noticees to refund 'jointly and severally' within three months the money received from the clients as fees in respect of their investment advisory services.
Also, the regulator barred the noticees from the securities markets for a period of three years, from the date of completion of refund to clients/ investors, whichever is later.
In addition, they shall not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from Sebi either directly or indirectly during or after the expiry of the debarment period, the order said.
Meanwhile, in a separate order, the regulator levied a fine of Rs 1 lakh on Aum Capital Market Pvt. Ltd. for violating regulatory norms.
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