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Capital markets regulator Sebi on Wednesday barred Billionaire Solutions and its sole proprietor Akash Jaiswal from the capital markets for two years for providing unauthorised investment advisory services and directed them to refund investors’ money.
Sebi received a complaint, alleging that the complainant had paid over ₹1 lakh to Billionaire Solutions and the said entity has cheated him by taking money in the name of offline trading.
Sebi said Billionaire Solutions and its proprietor must cease and desist from acting as an investment advisor including the activity of acting and representing through any media until further orders.
The regulator has also banned the company from accessing the securities market and deal in securities in any manner whatsoever, directly or indirectly.
In its order, Sebi found that Billionaire Solutions and Jaiswal were engaged in the business of providing investment advice to the public in lieu of monetary consideration and were thus, acting as an 'investment adviser'.
However, they were not holding any certificate of registration from Sebi to act as an investment advisor (IA), the regulator noted.
Through such acts, they violated the provisions of IA norms and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules, it added.
The regulator said that materials available on record do not indicate the exact amount of fees collected by the noticees through unregistered investment advisory services. However, the interim order records that they received credits worth ₹36.45 lakh in bank accounts.
Billionaire Solutions and Jaiswal are collectively referred to as noticees.
In its order, Sebi has directed noticees, within three months, to refund the money received from the investors as fees in respect of their unregistered investment advisory activities.
They have been prohibited from accessing as well as dealing in the securities market directly or indirectly in any manner for two years" from the date of this order or till the expiry of two years from the date of completion of refunds to investors...whichever is later".
In addition, they have restrained from selling their properties, securities and mutual funds holding except for the sole purpose of making the refunds.
In a separate order, the regulator has confirmed its interim directions issued against one individual, Krishnamurthy G, whereby it had barred him from carrying out investment advisory activities after finding that he was providing unauthorised investment tips to investors.
"Pending examination/investigation, I find no reason to modify the directions issued under the interim order and consequently, hereby confirm the directions made with respect to Krishnamurthy in the interim order," Sebi Whole Time Member S K Mohanty said in a confirmatory order.
The regulator said it did not find any reason to deviate from the prima-facie findings recorded in the interim order that Krishnamurthy was running an unregistered investment advisory service through his website.
By running such activity in a proscribed manner, Krishnamurthy has appeared to have deceived several gullible investors and by running such activity, he prima-facie collected ₹12.56 lakh, it added.
Through a separate order, the Securities and Exchange Board of India (Sebi) has exempted J S Family Trust from making an open offer for the proposed acquisition of shares in Subros Limited.
The proposed acquisition is intended to have a suitable succession structure and promote the welfare of the promoter family, the order noted.
The order comes after the regulator received an application from the trust seeking exemption from the applicability of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations in the matter of proposed acquisition of shares in Subros.
