Markets regulator Sebi has barred two entities and their proprietors from the capital markets for two years for carrying out unregistered investment advisory activities and directed them to refund investors’ money.
The markets regulator found that Investmart and its proprietor Anshuman Bhise, as well as Algo Solution and its proprietor Piyush Porwal were engaged in the business of providing investment advice to the public and were thus acting as investment advisers.
The regulator said these entities violated investment advisers (IA) rules and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Accordingly, the Securities and Exchange Board of India (Sebi), in two separate orders on Wednesday, said the entities “shall within a period of three months… refund the money received from the clients/investors/ complainants, as fees or consideration or in any other form, in respect of their unregistered investment advisory activities”.
Also, they have been barred from the capital markets for a period of two years or till the expiry of two years from the date of completion of refunds to investors, whichever is later. Further, they have been prohibited from associating with any listed firms during this period.
In addition, they have been prevented from selling their assets, properties and holding of mutual funds/ shares/ securities held by them in demit and physical form except for the sole purpose of making the refunds to investors.
The order comes into force with immediate effect. 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 would come into force on June 15, Sebi said.
Earlier in February 2020, the regulator had imposed several restrictions against the entities through interim orders.