New Delhi: SEBI has barred Cypress Money Investment Adviser and its partners from the securities market for at least three years and asked them to refund the fees collected from clients in respect of the unregistered investment advisory as well as research analyst services.
A Sebi probe found that Cypress Money was providing investment advisory services and was 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.
It has provided services to 90 clients and collected a total of Rs 14.7 lakh as fees from these clients.
However, Cypress Money and its partners were acting as investment advisors and research analyst without securing registration from the regulator.
By indulging in such activities, they have violated the regulator’s investment advisors as well as research analyst services norms.
In its order dated May 3, Sebi has asked Cypress Money and its partners — Anubhav Kandpal, Saumya Kala and Suman Kala — to refund the money received from its clients as fees, issue public notices with modalities of the refund.
They have been asked to submit a certificate from a chartered accountant after the repayments within three months, failing which Sebi would initiate recovery proceedings against him.
Sebi also barred them from all direct or indirect dealings in securities market till three years from the date of refund, while partners have also been restrained for at least three years from associating with any listed company or any company intending to raise money from public.
The regulator further prohibited the company and its partners from undertaking any investment advisory services, research analyst services or any other activity in the securities market without obtaining registration from Sebi.