Unregistered investment advisory case: Sebi invites refund claims from Cypress Money clients

By: |
September 28, 2020 1:22 PM

In a public notice, Securities and Exchange Board of India (Sebi) has asked it to submit the refund claim by November 30.

sebi newsSebi found that certain entities who were found to be person acting in concert, had acquired shares in excess of 5 per cent and 10 per cent.

Market regulator Sebi on Monday initiated the refund process for the clients of Cypress Money Investment Advisor, which collected fees through unregistered investment advisory as well as research analyst services. In a public notice, Securities and Exchange Board of India (Sebi) has asked it to submit the refund claim by November 30.

According to Sebi, Cypress Money and its partners — Anubhav Kandpal, Saumya Kala and Suman Kala –were providing investment advisory services and were also offering stock recommendations and technical and fundamental calls in form of research analyst services in exchange of consideration from October 2015 to June 2017.
Through such services, a total of Rs 14.7 lakh as fees was collected from 90 clients. They were acting as investment advisors and research analysts without securing registration from the regulator.

Accordingly, the regulator, in May 2018, had barred Cypress Money and its partners from the securities market for at least three years and asked them to refund the fees collected from clients. However, they failed to refund the money to clients. Consequently, Sebi initiated the recovery proceedings in February 2019.

“Since the recovery proceedings have been concluded and the amount… has been recovered, therefore, it is decided to initiate the refund of fees to the eligible clients,” Sebi said. Further, clients of the defaulters have been asked to submit application in a prescribed format to Sebi for refund of fees.  The refund will be subject to verification of genuineness of claim.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Quarterly earnings, global trends to drive equity market this week: Analysts
2Mcap of 6 of top-10 firms erode by Rs 76,640.54 cr; HDFC Bank biggest laggard
3Nifty may witness major breakout above 15,950; Tata Steel, ICICI Prudential find support on charts