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SEBI clamps down on SMS scam offering investment tips

SEBI had noticed that certain entities were offering intraday tips and stock advisory services to investors through SMSs via mobile phones

August 21, 2013 2:08 IST | India Infoline News Service
Market regulator SEBI on Tuesday crackdown on entities engaged in unregistered investment advisory and portfolio management activities through short message services (SMSs).

SEBI had noticed that certain entities were offering intraday tips and stock advisory services to investors through SMSs via mobile phones, the regulator said in a press release.

SEBI, as part of its investigation, obtained details of the call data records of the telephone numbers used for sending such SMSs. Thereafter, SEBI conducted a surprise visit on the premises of one Imtiyaz Hanif Khanda and one Vali Mamad Habib Ghaniwala.

It was prima-facie observed that the said persons through their proprietary concerns viz. M/s Right Trade, M/s Sai Traders, M/s Bull Trader and M/s Laxmi Traders were providing investment advice without being registered with SEBI, it added.
 
Further, M/s Right Trade had solicited business of portfolio management services from the general public without being registered as a portfolio manager with SEBI. The entities had also made misrepresentations by making unrealistic claims, false statements such as having office in various countries, FII based calls, jackpot calls, etc., and they also made representation in reckless and careless manner in their messages and website suggesting facts which are not true.

By their acts and omissions they have prima-facie solicited, enticed and induced investors to deal in securities on the basis of their investment advices, stock trade tips, etc.

SEBI has debarred Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala from buying, selling or dealing in the securities market.

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