Those banned by Sebi are -- Yogendra Gangrade, partner of Prowise and sole proprietor of Prowise Consultancy, and partners of Prowise Capital --Swati Purwar, Vaibhav Patil, and Arun Jatav.
Sebi has barred Prowise Consultancy, Prowise Capital, and its partners from the securities markets for two years and asked them to refund the money collected from providing unauthorised investment tips to investors.
Those banned by Sebi are — Yogendra Gangrade, partner of Prowise and sole proprietor of Prowise Consultancy, and partners of Prowise Capital –Swati Purwar, Vaibhav Patil, and Arun Jatav.
Sebi noted that they have carried out investment advisory activities without obtaining a certificate of registration from the regulator.
Prowise Consultancy mobilised Rs 71.85 lakh during October 2018 to February 2020 and Prowise Capital collected Rs 1.2 crore from January 2016 to February 2020, the order noted.
“The claims/representations made by the noticees on their website were misleading and were made to allure investors to avail investment advisory services being offered by the noticees,” Sebi said.
Prowise Consultancy, Prowise Capital, and its four partners were collected and referred as noticees.
By indulging in such activities, they violated the provisions of investment advisers (IA) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the Securities and Exchange Board of India (Sebi) said in an order on Monday.
“Noticees shall within a period of three months from the date of coming into force of this direction, refund the money received from the clients/investors/complainant, as fees or consideration or in any other form, in respect of their unregistered investment advisory activities,” the regulator said.
Also, they have been barred from accessing the securities market and further prohibited from buying, selling, or dealing in the securities market for two years or till the expiry of two years from the date of completion of refunds to investors, whichever is later.
In addition, they have been restrained from associating with any listed company or any registered intermediary during such a period.
The order comes into force with immediate effect, Sebi said. However, in view of the exceptional circumstances that emerged due to the outbreak of a COVID-19 and consequential lockdowns imposed in different parts of the country, the direction related to refund will come into force on July 1, 2021, it added.
In four separate orders, the regulator levied a fine of Rs 23 lakh on Motisons Commodities, Rs 7 lakh on Manoj Choraria, and Rs 5 lakh each on Mehta Finstock and Nirmal Commodities Broker in a case related in illiquid stock options at the BSE.
These entities were indulged in reversal trades involving squaring off open positions with a significant difference without any basis for such change in the contract price. Such trades resulted into the generation of artificial volumes in the stock options contracts, Sebi said.
By executing such trades, they violated the provisions of PFUTP norms, it added. The regulator conducted an investigation into the trading activity in illiquid stock options on BSE during April 2014 to September 2015 after observing large-scale reversal of trades in the stock options segment of the exchange.
In a separate order, the regulator penalised seven entities for indulging in fraudulent and manipulative trading in the shares of Aadhaar Ventures India Ltd (AVIL).
Sebi levied a fine of Rs 3 lakh on Gajpal Buildinfra, Rs 2 lakh on Santosh Vasant Bhelekar, Rs 1.5 lakh on Ajay Ravindra Shah, and Rs 1 lakh each on Chandrakant B Shah, Saurabh Kumar Rasiklal Gandhi, Kinita Real Estate and Monaecum Properties.
Sebi noted that they were indulged in executing manipulative trades in small quantities to increase the price of scrip of AVIL and violated the provisions of PFUTP rules. The order comes after Sebi conducted an investigation in respect of trading/dealings in the scrip of AVIL during the period January 2009 to April 2015.