Sebi has barred Capital Money Mantra and its proprietor Gaurav Yadav from the securities markets for two years and asked them to refund the money collected from providing unauthorised investment tips to investors. Sebi noted that Capital Money Mantra and its sole proprietor Yadav have carried out investment advisory activities without obtaining a certificate of registration from the regulator.
The amount of money collected by the company was Rs 65 lakh from investors through such services during the period from October 2015 to July 2017. By indulging in such activities, they violated the provisions of investment advisers (IA) regulations, the Securities and Exchange Board of India (Sebi) said in an order on Thursday.
"Noticees shall within a period of three months from the date of coming into force of this direction, refund the money received from the clients/investors/complainant, as fees or consideration or in any other form, in respect of their unregistered investment advisory activities," the regulator said.
Capital Money Mantra and Yadav are collectively referred as noticees. Also, they have been barred from accessing the securities market and further prohibited from buying, selling or dealing in the securities market for two years or till the expiry of two years from the date of completion of refunds to investors, whichever is later.
In addition, they have been restrained from associating with any listed company or any registered intermediary during such period.
The order comes into force with immediate effect, Sebi said. However, in view of the exceptional circumstances emerged due to the outbreak of a COVID-19 and consequential lockdowns imposed in different parts of the country, the direction related to refund will come into force on July 1, 2021, it added.
In a separate order passed on Friday, Sebi has imposed a penalty totalling Rs 8 lakh for violating regulatory norms in the case of A2Z Infra Engineering. The regulator levied a fine totalling Rs 7 lakh on Keshav Shares And Stocks Ltd and Surbhi Resorts (now known as Signature Sattva Infratech) for violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
In addition, a penalty of Rs 1 lakh has been imposed on Multiplex Capital for violating norms pertaining to stock brokers. The order comes after Sebi conducted an investigation in the scrip of A2Z Infra Engineering for the period from March 2016 to May 2016.
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