Sebi bars FWCS, its directors from markets for 1 year for unauthorised advisory services
The regulator also noted, noticees have been restrained from accessing the securities markets until further orders through the interim order.
Markets regulator Sebi has barred Fingravy Wealth Creation Services (FWCS) and its directors from the securities markets for 1 year for providing unauthorised advisory services.
The order came after Sebi passed an ex-parte interim order dated January 14, 2020 against FWCS and its present and past directors -- Dhiraj Gupta, Sumit Kumar, Hemanchal Singh, Ravindra Singh and Ashutosh Sharma.
In its interim order, the regulator found FWCS and its directors were prima facie found to have violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules and IA (Investment Advisors) norms.
The regulator also noted, noticees have been restrained from accessing the securities markets until further orders through the interim order.
They were also directed to cease and desist from acting as an investment advisor until further orders.
In its final order, the regulator found FWCS and its directors have not disputed the findings of the interim order in respect of the company carrying out investment advisory services without obtaining registration from Sebi as an 'investment advisor'.
The aggregate amount of Rs 6.13 crore that has been collected by FWCS by providing unregistered investment advisory services for the period from January 2018 to August 2019, Sebi said in the latest order on Tuesday.
Sebi has directed noticees to refund, "jointly and severally", within three months, the money received from clients in respect of their unregistered investment advisory activities.
Also, the regulator restrained them from accessing or dealing in the securities markets for a period of 1 year or till the expiry of 1 year from the date of completion of refunds to investors along with depositing of balance amounts, whichever is later.
In addition, they shall not undertake investment advisory services or any activity in the securities market without obtaining a certificate of registration from Sebi, either directly or indirectly, during or after the expiry of the period of debarment period, the order said.
Meanwhile, in a separate order, the regulator slapped a fine of Rs 5 lakh on an entity for violating the regulatory norms in the matter of Vivimed Labs Ltd.
In another order, the regulator imposed a fine of Rs 2 lakh on Investmaxima Advisors LLP for not complying with Sebi's AIF (alternative investment funds) rules.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
HDFC Bank's new credit card offers customers to decide their billing cycle, reward points and cashback; know more about it
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
07:41 AM IST