Sebi bans individual for providing unauthorised investment services

By: |
September 11, 2020 11:37 PM

The regulator found that Krishnamurthy was offering advisory services in stock cash, stock futures, Nifty futures, among others, to his clients as part of its advisory services. Through such services, he collected over Rs 12 lakh.

Thus, the activities of Krishnamurthy are, prima facie, in violation of the IA (Investment Advisory) Regulations, Sebi said in an interim order passed on September 7.Thus, the activities of Krishnamurthy are, prima facie, in violation of the IA (Investment Advisory) Regulations, Sebi said in an interim order passed on September 7.

Markets regulator Sebi has barred Krishnamurthy G from carrying out investment advisory activities after finding that he was providing unauthorised investment tips to investors.

Also, he has been restrained from accessing the capital markets till further orders, Sebi said in an interim order.
The regulator found that Krishnamurthy was offering advisory services in stock cash, stock futures, Nifty futures, among others, to his clients as part of its advisory services. Through such services, he collected over Rs 12 lakh.

The regulator noted that he is not registered with Sebi as an investment advisor and the characteristics and features of the business activity carried out by him, prima facie, leads to the conclusion that he is holding himself out and acting as an investment adviser without obtaining registration.

Thus, the activities of Krishnamurthy are, prima facie, in violation of the IA (Investment Advisory) Regulations, Sebi said in an interim order passed on September 7.

Accordingly, Krishnamurthy has been directed to “cease and desist from acting as an investment advisor” until further orders, the regulator said. Also, he has been asked not to divert any funds raised from investors, kept in bank account(s) and/or in his custody until further orders.

He has also been restrained from disposing of any assets, whether movable or immovable or any interest or investment or charge on any of such assets held in his name, including money lying in bank accounts except with the prior permission of Sebi.

The regulator directed to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications among others, in relation to their investment advisory activity or any other unregistered activity in the securities markets.

The directions will come into force with immediate effect and will be in force until further orders.

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