Sebi bans 7 entities for unauthorised investment advisory

NEW DELHI, (PTI): The Capital markets regulator Sebi on Thursday imposed a ban on Trend Market Advisory Services and six individuals for providing unauthorised stock recommendation to investors.

They have been restrained from the securities markets for varying periods.

Two individuals — C Murlitharan and C Paranitharan — have been restrained from the securities markets for one year. Trend Market Advisory Services (TMAS), NSK Chithanathan, C Senthilnathan, C Vijai and S Kokila have been prohibited from the capital markets for a period of six months from the date of this order or till the completion of refunds.

The order comes from a show cause notice dated July 19, 2021 issued by Sebi against TMAS and its partners.

Trend Market Advisory Services is a partnership firm and Murlitharan, Paranitharan, Chithanathan, Senthilnathan, Vijai and Kokila are the partners of the firm.

In its show cause notice, Sebi said entities prima facie found engaged in unregistered investment advisor activities without obtaining a certificate of registration from the market watchdog mandated under IA (Investment Advisors) regulations.

The amount of money, prima facie, observed to have been collected by the entities was Rs 10.52 lakh for the period from January 2013 to July 2019.

”The regulator found that misrepresentations made by the entities without holding a mandatory certificate of registration from Sebi to act as an investment adviser are in violation of IA rules,” Sebi said in the order.

Further, Sebi has directed all the entities to refund, within three months, the money received from the investors in respect to their unregistered advisory activities.

Also, they have been prevented from selling their properties, securities and mutual funds holding except for the sole purpose of making refunds. (PTI)