Sebi bans entities from market in unauthorised investment advisory case

Sebi on Wednesday barred Safe Trader and its proprietor Rajnandani Jalkhediya from the securities markets for providing unauthorised investment advisory services and also imposed a penalty of Rs 2 lakh on them.

In addition, they have been asked to refund Rs 39.64 lakh collected from the clients as fees in respect of their unregistered investment advisory activities.

In its order, Sebi found that the entities were providing investment advisory services without obtaining a registration certificate from the regulator, which was in violation of the provisions of Investment Advisers (IA) rules.

The order revealed that over Rs 39 lakh were credited in the accounts of the entities between August 2020 and July 2021.

"The noticees (Safe Trader and its proprietor) without holding a certificate of registration as investment adviser have knowingly disseminated false information/made misleading statements and held themselves out as investment adviser on their website. Thus, I find that the ...