SEBI bars 15 entities from offering investment advisory services

New Delhi: SEBI has barred 15 entities from the securities market for carrying out unauthorised investment advisory activities and directed them to desist from acting as investment advisor until further orders.

The entities which have been barred include Investmart, Profit Redefine Financial Solution, Analog Research, Money Booster, Billionaire Solutions, Capital Exchange India, Trade Money Research, Money Capital Investment, Mahankal Capital, Rushabh Research and Algo Solution.

Passing an interim order against the firms and their proprietors, SEBI, among other directions, asked the entities to withdraw all advertisements in relation to their investment advisory services or any other unregistered activity in the securities market.

The entities may file their objections within 21 days from the date of the order, Sebi said in an order dated February 7.

The regulator said it “prima facie appears that the noticees were knowingly concealing the fact that they are not registered with Sebi as an investment advisor and were also making representations on their website in a reckless and careless manner about their expertise in investment advisory thereby luring and inducing investors to deal in securities by availing their services.”

The order came after SEBI received several complaints alleging that the entities were involved in unauthorised investment advisory activities.

The entities have prima facie violated Prohibition of Fraudulent and Unfair Trade Practices norms as well as investment advisers norms, it said.

In a separate order, SEBI suspended SIC Stocks and Services from registering new clients for two months for its failure to transfer securities to clients’ Demat account within the prescribed time period.

Besides, the regulator noted that the broker accepted cash from a client for securities transactions or as margin for purchase of securities from the client.