Sebi bans 2 individuals from securities markets for 1 year over unregistered investment advisories

Sebi bans 2 individuals from securities markets for 1 year over unregistered investment advisories

New Delhi, Nov 22 (PTI) Capital markets regulator Sebi on Wednesday debarred two individuals from the securities markets for one year and slapped a fine of Rs 2 lakh on them for carrying out unregistered investment advisory activities.

The regulator also directed the noticees (P Krishnakumar and Jagadeesan S) to refund all the money, within three months, collected from any investors/complainants, as fees in respect of their unregistered investment advisory activities.

The order came after Sebi conducted an examination on the receipt of a complaint against www.ymforecast.com managed by P Krishnakumar and Jagadeesan S, and prima facie found that they were carrying out unregistered investment advisory activities.

Subsequently, a show cause notice was issued to the noticees on September 4.

In its 22-page order, Sebi found that the noticees were acting as an investment adviser without holding the certificate of registration from the markets watchdog.

Therefore, the noticees were in violation of the provisions of IA (Investment Adviser) regulations, it said.

By acting as an investment adviser and without obtaining certificate of registration, the noticees have acted in total disregard to the requirements of law and have violated IA norms, the order said.

The markets watchdog also noted that the noticees received total credit of Rs 30.92 lakh as advisory fees from April 2021 to January 2023, as per the order.

Accordingly, the noticees were debarred from accessing as well as dealing in the securities market for one year and were fined Rs 1 lakh each.

In two separate orders, Sebi suspended the registration of two brokerage firms -- GEPL Commodities and Nariman Commodity Services -- for its involvement in illegal paired contracts on the now defunct National Spot Exchange Ltd (NSEL). PTI HG TRB

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