Market regulator Sebi has banned Fingravy Wealth Creation Services (FWCS) and its directors from the securities markets for 1 year for providing unauthorized advisory services.
The injunction came after Sebi passed an ex-parte interim injunction against FWCS and its current and former directors – Dhiraj Gupta, Sumit Kumar, Hemanchal Singh, Ravindra Singh and Ashutosh Sharma on January 14, 2020.
In its interim order, the regulator found that FWCS and its directors prima facie violated the provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Rules and the Investment Advisors (IA) Standards.
The regulator also noted that notices cannot access the securities markets for further orders through the preliminary order.
They were also instructed to cease acting as investment advisors until further notice.
In its final order, the regulator ruled that FWCS and its directors did not contest the findings of the preliminary order regarding the company providing investment advisory services without registering Sebi as an ‘investment advisor’.
The total amount of Rs 6.13 crore 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 issued notices to pay back “jointly and severally” within three months the money they have received from clients in relation to their unregistered investment advisory activities.
Also, the regulator withheld them from accessing or trading in the securities markets for a period of 1 year or until the expiration of 1 year from the date of completion of investor repayments along with the deposit of balance amounts, whichever is later.
In addition, they may not provide investment advisory services or engage in any securities market activity without directly or indirectly obtaining a registration certificate from Sebi during or after the expiration of the exclusion period, the order said.
Meanwhile, in a separate order, the regulator has imposed a fine of Rs 5 lakh on an entity for breaching regulatory norms in the case of Vivimed Labs Ltd.
In another order, the regulator imposed a Rs 2 lakh fine on Investmaxima Advisors LLP for failing to comply with Sebi’s AIF (alternative investment funds) rules.
(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)