Sebi bans Money Plus, proprietor from carrying out investment services
Markets regulator Securities and Exchange Board of India has barred Money Plus Research Advisory and Financial Services and its proprietor Pravin Meshram from acting as investment advisors, for providing unauthorised trading tips to investors. Besides, they have been restrained from accessing the securities market until further orders.
After receiving complaints, the Securities and Exchange Board of India (SEBI) carried out a preliminary examination to ascertain whether unregistered investment advisory activities are being carried out by the firm.
In its interim order, Sebi said Money Plus is soliciting and inducing the investors to deal in the securities market on the basis of investment advice, stock tips, etc., prima facie, without having the requisite registration as mandated under the investment advisor (IA) regulations.
The amount of money, prima facie, observed to have been collected by Money Plus and its proprietor Pravin Meshram was Rs 53.85 lakh.
Accordingly, the regulator has directed Money Plus and Meshram to “cease and desist from acting as an investment advisor including the activity of acting and representing through any media (physical or digital) as an investment advisor, directly or indirectly”.
Also, they have prohibited from diverting any funds raised from investors.
Further, they have been barred from disposing of any assets, whether movable or immovable, including money lying in bank accounts except with the prior permission of Securities and Exchange Board of India.
In addition, Securities and Exchange Board of India (SEBI) has asked them to immediately withdraw and remove all advertisements, brochures, publications, and documents, among others, (physical or digital) in relation to their investment advisory activity.
These directions will come into force with an immediate effect and will be in force until further orders, Securities and Exchange Board of India(SEBI) said in an interim order passed on Friday.