The Securities and Exchange Board of India (Sebi) has barred Hybrid Research Advisory Services and Always Gain Advisory Service from the capital markets for providing unauthorised trading tips to investors. In addition, Hybrid Research’s proprietor and partners of Always Gain have have also been restrained from the capital markets.
Besides, they have been prohibited from carrying out investment advisory services till further orders. The direction comes after the regulator received complaint against Hybrid Research and Always Gain alleging that these are unregistered entities that are defrauding people.
Pursuant to this, markets regulator Sebi conducted preliminary examination and found that the two entities were soliciting and inducing investors to deal in securities market on the basis of investment advice, stock tips, and intra-day calls, among others, prima facie. The entities were doing this without having the requisite registration as mandated under the investment advisor (IA) norms. Prima facie, Hybrid Research and Always Gain had collected Rs 3.85 crore and Rs 1.09 crore, respectively, from investors through such services.
By indulging in such activities, they violated the provisions of IA Regulations, the market regulator said in two separate interim orders on Monday. Accordingly, Sebi directed Hybrid Research, its proprietor Nikhil Kumar; Always Gain, its partners G Manohari and Ashok Kumar and alongwith its former partner S Ramakrishnan to “cease and desist from acting as an investment advisor” until further orders.
They have been asked to immediately withdraw and remove all advertisements in relation to their investment advisory activity until further orders. Further, the regulator prohibited them from diverting any funds raised from investors and restrained them from disposing of any assets, whether movable or immovable, including money lying in bank accounts, except with the prior permission of Sebi.
Sebi asked them “not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders”.