Sebi bars Profit Money Advisor, its proprietor from securities mkt
Among other directions, Profit Money Advisor (PMA) and its proprietor Prateek Singh have been directed to cease and desist from acting as an investment advisor.
The interim directions come after the regulator prima facie found them violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as Investment Advisor (IA) regulations.
The entity was acting as an investment adviser without a certificate of registration from the regulator, as per an order.
Further, the regulator observed that PMA’s claim to provide a specific monthly return on clients’ investment, is, prima facie, an active concealment of the material fact that every investment in the market is subject to market risk.
This act of conveying specific monthly returns was for the purpose of luring customers into its net and thereby increasing its income, the watchdog said.
In its order, Sebi also directed them not to divert any funds raised from investors, kept in bank account(s) and/or in their custody.
Besides, they have been asked to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications etc. in relation to its investment advisory activity or any other activity in the securities market.
In case they have any open position in any exchange-traded derivative contracts, as on the date of the order, they can close out/ square off such open positions within three months or at the expiry of such contracts, whichever is earlier, as per the order.
The directions will be in force till further orders.
