New Delhi :Capital markets regulator Sebi today imposed a penalty of Rs 35 lakh on one Rajesh Sudhakar Prabhudesai for providing unauthorised investment advisory services to investors.
Sebi had received an application from Prabhudesai for registration as Investment Adviser (IA) under norms, on November 11, 2014, after a year from the cut-off date for existing Investment Advisers to file the application for registration, which was October 21, 2013.
Accordingly, the services provided by Prabhudesai after October 21, 2013 were allegedly deemed to be ‘unauthorised Investment Advisory Services’.
Prabhudesai had earned about Rs 34.70 lakh from Investment Advisory activities subsequent to October 21, 2013.
“… the noticee’s conduct of providing unauthorised investment advisory services for a fee, continuing to receive consideration from clients, performance based or otherwise, without making an application for grant of certificate of registration under the IA Regulations, was in clear violation of the IA Regulations,” Sebi noted.
In a separate case, the markets watchodog has levied a fine of Rs 20 lakh on Greshma Shares and Stocks for alleged transfer of funds between the group companies.
Transfer of funds took place between Greshma Shares and Stocks and its commodity company GCPL, which is in violation with the brokers regulations.
Greshma Shares and Stocks has admittedly violated Sebi norms “for a total of 282 instances (136 clients) for a total amount of Rs 213.06 lakh.”
In an another case, Sebi has slapped a fine of Rs 15 lakh on Hedge Equities for violating various broker regulations.
Hedge Equities “by not forwarding statements to its clients… had admittedly violated Sebi circular dated December 3, 2009 and circular dated May 13, 2011, with respect to running account settlement in respect of all its clients during the entire inspection period comprising of seven quarters, i.e. from quarter ended June 30, 2012 till quarter ended December 31, 2013”.
Besides, Hedge Equities was neither issuing statements to the clients at the time of voluntary request pay outs made, nor carrying out mandatory quarterly settlement at the end of the quarter in respect of such clients.