The order comes after the Securities and Exchange Board of India (Sebi) received several complaints against Gupta.
Regulator Sebi has barred Trade India Research’s proprietor Neha Gupta from the capital markets for promising assured returns to lure clients into subscribing multiple packages in order to maximise fee for her own benefit. The order comes after the Securities and Exchange Board of India (Sebi) received several complaints against Gupta.
Following this, the regulator conducted a preliminary examination into the activities of Gupta and found that she acted in a fraudulent manner with clients’ — selling them non-existent products, creating fake portfolio for clients and showing profit in such a portfolio.
Further, the employees of Gupta used fake names in dealing with clients. Moreover, she was charging her clients unreasonable fees, arbitrary and not consistent with the pricing policy, the regulator said in its order passed on Friday.
“The noticee (Gupta) has adopted dishonest business practices/ modus operandi (assuring returns, taking unreasonable and arbitrary fees from client, etc) to lure the clients into buying/ subscribing multiple packages in order to maximize fee for its own benefit,” Sebi noted.
By indulging in such activities, Gupta has violated regulations pertaining to investment adviser and PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms. Accordingly, the regulator has restrained Gupta from “buying, selling or dealing in the securities market or associating themselves with securities market, either directly or indirectly, in any manner whatsoever, till further directions”. Among others, Sebi has prohibited Gupta and any person while working under her from undertaking the activity of investment advisory services.