NEW DELHI : Sebi on Friday banned Bullmatics Advisory and its administrators from the securities market for six months for providing unauthorized investment advisory services and ordered them to return investors’ money.
Bullmatics provided investment advisory services without obtaining Sebi’s registration as an investment adviser.
The directors of the company – Triloki Nath Verma and Ajitesh Kumar – who run the business were responsible for its operations.
By such acts, they violated the provisions of the Investment Advisers (IA) standards, the Securities and Exchange Board of India (Sebi) said in its final order.
The regulator noted that entities have collected ₹1.7 crore through investment advisory services.
In the order, Sebi ordered the entities, within three months, to repay money received from investors as fees for their unregistered investment advisory activities.
In addition, they were prohibited from accessing and trading in the securities market directly or indirectly in any way whatsoever for a period of six months or until the expiry of a period of six months from from the date of completion of redemptions to investors, whichever is later. The order will take effect immediately.
However, considering the exceptional circumstances due to COVID and the consequent restrictions imposed in different parts of the country, the refund instructions will come into effect from February 28, Sebi said.
Meanwhile, in seven separate orders, the regulator imposed a fine totaling ₹35 lakh on seven entities including individuals for engaging in inauthentic trading in illiquid BSE stock options.
He imposed a sentence of ₹5 lakh each on Minal Aggarwal, Bineet Agarwal, Nisha Balasiya, Santosh Kumar Saraf HUF, Kashni Gupta, Navneet Kothari HUF and Rajeev Gupta HUF. From April 2014 to September 2015, the entities engaged in the execution of stock option contract reversal trades, which were not genuine and created a false and misleading appearance of trading in terms artificial volumes of stock options, resulting in a violation of the PFUTP (Prohibition of Fraudulent and Unfair Trading Practices), Sebi noted.
Sebi, by a separate order, imposed a sentence of ₹10 lakh on Three C Green Developers for violating the provisions of the LODR rules (registration obligations and disclosure requirements). I
In another order, the regulator imposed a fine of ₹5 lakh on Sharekhan Ltd for engaging in fraudulent trading in shares of Sampada Chemicals.
“The notary (Sharekhan) manipulated the price of the Sampada certificate and created a deceptive appearance of trading the certificate to induce innocent investors in the securities market to thereby contravene the provisions of… PFUTP regulations,” Sebi said.
The regulator investigated Sampada Chemicals’ certificate for the period October 2010 to March 2011 to determine whether there had been any violation of the provisions of the regulatory standards.
Separately, Sebi slapped a fine totaling ₹5 lakh on six entities in New Global Ventures Ltd share price manipulation case
The regulator had conducted an investigation during the period from December 2010 to March 2013 in the certificate of Nouveau to determine whether there had been price manipulation during trading by certain suspicious entities in the certificate, leading to a violation of the PFUTP rules.
In the same case, Sebi separately imposed a sentence of ₹1 lakh on Vazhacholil Paul Xavier for breaking PFUTP rules.
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