Sebi bans 4 entities from market for unauthorised advisory services

Capital Markets regulator Sebi on Tuesday barred four entities from the securities markets for providing unauthorised investment advisory services without the regulator's authorisation.

The regulator has restrained PNP Shareon Solutions, its proprietor Pradeep Haldar, PNP Solutions and its proprietor Prakash Haldar from securities markets for six months.

PNP Shareon Solutions, PNP Solutions, Pradeep and Prakash Haldar are collectively referred to as noticees.

The present proceedings emanate from a show cause notice issued to noticees by the regulator in August 2021.

In its final order, Sebi found that noticees were engaged in providing investment advisory services without obtaining a certificate from Sebi as an investment adviser, thereby violating IA (Investment Advisers) rules.

 

The total amount of money collected by the noticees is Rs 60.49 lakh from September 2017 to June 2020.

Sebi has directed the noticees to refund jointly and severally within three months, the money received from clients in respect of investment advisory activities.

Also, the regulator barred the noticees from accessing as well as dealing in the securities markets for a period of six months from the date of completion of refunds to investors along with depositing of balance amounts, whichever is later.

In addition, they shall not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from Sebi, either directly or indirectly, during or after the debarment period, the order said.