A Sebi probe found that Bagga had carried out unregistered investment advisory activities from March 2013 to September 2015 before obtaining registration (registration granted on October 30, 2015).
Sebi on Thursday barred Research Infotech proprietor Jasmeet Kaur Bagga from accessing the capital market and involving in investment advisory services, after the regulator’s prima facie finding that she made commitments for assured profit.
The markets regulator received complaints through the SCORES portal against Capproin Financial Advisory Services, which is allegedly engaged in unregistered investment advisory activities. Bagga, who is proprietor of Research Infotech, is also one of the partners of Capproin.
A Sebi probe found that Bagga had carried out unregistered investment advisory activities from March 2013 to September 2015 before obtaining registration (registration granted on October 30, 2015). Bagga while applying for registration as an investment advisor through the proprietorship Research Infotech prima facie submitted false and misleading information to the regulator stating that she was not engaged in investment advisory services prior to making the application, it added.
Sebi said it prima facie appears to be making assured profit commitment and extracting more and more money from its clients by putting strict deadlines for making payments, refusing to provide any services in the event of delay, upgrading/changing from one package to another and engaging in unethical practices like charging various types of non-transparent fees, among others.
By indulging in such activities, Bagga violated the provisions of investment adviser regulations and the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms. Accordingly, the regulator in its interim order has barred Bagga from acting as an investment advisor. Besides, it prohibited her from accessing the securities market until further orders.
In addition, it asked Bagga “not to divert any funds raised from investors, kept in bank account(s) and/or in their custody until further order”.