Sebi bans two entities from securities markets for three years

1 Sep 2022 , 08:10 AM

Two people and two businesses were banned from the securities market by market regulator Sebi on Tuesday in New Delhi for offering advisory services without its permission.

For three years, the regulatory body has prohibited Core Investment (owned by Deepak Bamne) and Core Group (owned by Matwar Mehra) from operating in the securities markets.

The instruction was given after Sebi received a complaint against the firms for failing to pay out on the complainant’s investments.

Following an investigation, Sebi issued an ad-interim ex parte order-cum-show-cause notice to the entities on November 26, 2019, ordering them to stop posing as investment advisors and research analysts and barring them from the securities markets until further orders.

In violation of IA (Investment Adviser) requirements, the regulator discovered that both the firms and their owners were engaged in offering investment advisory services without first obtaining a certificate of registration from Sebi as an investment adviser.

According to Sebi’s decision, the firms appeared to have received Rs76.23 lakh in cash upfront.

The regulator gave them a three-month deadline to return any fees they had jointly and severally collected from investors in connection with their unregistered investment advice services.

In the meantime, the regulator fined nine organizations a total of Rs10 lakh for breaking regulatory rules in the case of SI Capital and Finance Services Ltd.

In a separate order, Sebi fined a person Rs5 lakh for engaging in dishonest behaviour in the preferential allocation of Esaar India Ltd. shares.

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