Sebi has barred Money Increase, Venture Revenue and two individuals from the capital markets for providing unauthorised investment tips and falsely promising assured returns to investors. Besides, they have been prohibited from carrying out investment advisory services. Those facing ban are -- Money Increase, Venture Revenue, their proprietor Ashish Chourasiya and Shinal Jain, who is connected to Chourasiya.
Sebi found that Chourasiya through its proprietorship of Money Increase and Venture Revenue was providing trading tips and stock specific recommendations to investors and the general public on payment of services.
Besides, Jain has, prima facie, aided and abetted Chourasiya in collection of payments or fee for the services, it noted.
It, further, said they are providing such services without obtaining registration from the regulator.
"Ashish Chourasiya through its proprietorship Money Increase and Venture Revenue and Shinal Jain by aiding and abetting Ashish Chourasiya is holding out as Investment Advisor and had also provided services of an investment adviser without a certificate of registration during the period February 15, 2016, till date," Sebi said in an interim order passed on Friday.
The entities, while knowing very well that the investment by clients based on the advice given by the investment adviser in securities market is subject to market risk, have promised guaranteed returns to clients.
By indulging in such activities, they, prima facie, violated the provisions of investment advisors regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Accordingly, the regulator has directed Money Increase, Venture Revenue and their proprietor Chourasiya, and Jain to "cease and desist" from acting as investment advisors, including directly or indirectly, until further orders.
Also, they have been directed not to divert any funds collected from investors. Besides, they have been barred from disposing of or alienating any assets, whether movable or immovable, without the prior permission of Sebi.
Further, they have been asked to immediately withdraw and remove all advertisements, literatures and brochures, among others in relation to their investment advisory activity.
Besides, the entities have been asked "not to access the securities market and buy, sell or otherwise deal in securities or associate themselves with securities market, either directly or indirectly, in any manner whatsoever, until further orders".
The directions will come into effect immediately and will be in force until further orders, Securities and Exchange Board of India (Sebi) said.
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