Unauthorised investment advisory slapped with Rs 6 lakh fine by SEBI

The order came after SEBI received complaints and thereafter the regulator had conducted an examination into the activities of Global Invest Consultant.

PTIUpdated: Wednesday, November 16, 2022, 08:59 AM IST
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SEBI on Tuesday levied fines totalling Rs 6 lakh on Global Invest Consultant and Advisor/The Global SNC/The Global and its proprietor Rakesh Aashware for providing unauthorised investment advisory services.

In addition, the regulator debarred them from the securities markets for a period of 3 years.

The order came after SEBI received complaints and thereafter the regulator had conducted an examination into the activities of Global Invest Consultant and Advisor/The Global SNC/The Global and its sole proprietor Aashware (noticees).

Pursuant to examination, the regulator issued a show-cause notice to noticees in June 2022 and found that they were engaged in investment advisory services without obtaining registration from SEBI in violation of IA (Investment Advisers) norms.

It was also observed that the noticees have knowingly published false and misleading information through its website thereby defrauding the investors at large.

The amount of money collected by the noticee was Rs 47.19 lakh from August 2020 to February 2021, Sebi said in its order.

Therefore, the market watchdog imposed a combined fine of Rs 6 lakh on the noticee for violating the provisions of IA rules and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations, it added.

In its order, SEBI directed the noticees to refund the money within three months received from the investors as fees in respect of their unregistered advisory activities.

They have also been restrained from securities markets for a period of three years or till the expiry of three years from the date of completion of refunds to investors, 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 expiry of the debarment period, the order said.

Meanwhile, in a separate order, the markets regulator levied fines totalling Rs 12 lakh on two individuals for violating the regulatory norms in the matter of Karvy Stock Broking Ltd.

The regulator imposed a fine of Rs 8 lakh on C Parthasarthy and Rs 4 lakh on Vikas Rajpal.

The order came after SEBI conducted an inspection of Karvy Stock Broking Ltd with respect to its portfolio management activities during the period from April 2018 to March 2019.

PMS-Karvy is registered as portfolio manager with SEBI and Parthasarthy was Chairman and MD of the company, while Rajpal was the compliance officer when the inspection was carried out.

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