Securities and Exchange Board of India(SEBI) has banned four entities from the security market for providing unauthorised investment advisory services without the regulator's approval.
The four entities barred by Sebi for six months include PNP Shareon Solutions, its proprietor Pradeep Haldar, PNP Solutions and its proprietor Prakash Haldar.
In its order, the capital markets regulator found that the four entities had violated IA (Investment Advisers) rules by providing investment advisory services without obtaining a certificate from Sebi. It also found that the four entities( referred to as noticees) had collected ₹60.49 lakh between September 2017 and June 2020.
Sebi has also directed the noticees to refund the money collected by them in lieu of investment advisory activities within a period of three months.
The noticees have been banned from accessing and dealing in the securities market for a period of six months from the date of completion of refunds to investors and depositing of balance amounts, whichever is later.
Furthermore, they have also been directed to not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from Sebi during or after the debarment period.
The proceedings had begun from a show cause notice by Sebi to the noticees in August 2021.
