Capital Money Mantra and its sole proprietor Yadav were found to have engaged in investment advice operations without getting a registration certificate from the authority.
Between October 2015 and July 2017, the company collected Rs 65 lakh from investors using such services.
They breached investment adviser (IA) regulations by engaging in such activities, the Securities and Exchange Board of India (Sebi) stated in an order on Thursday.
“Noticees shall refund any money received from clients/investors/complainants as fees or consideration or in any other manner, in connection with their unlicensed investment advice operations,” the regulator stated. Capital Money Mantra and Yadav are referred to jointly as noticees.
Additionally, they have been prevented from entering the securities market and are prohibited from purchasing, selling, or dealing in securities for two years, or until two years have passed since the completion of investor reimbursements, whichever comes first. Additionally, they were prohibited from engaging with any publicly traded corporation or registered intermediary during that time period.
Sebi stated that the order is effective immediately. However, in light of the unusual circumstances created by the outbreak of COVID-19 and subsequent lockdowns enforced in several parts of the nation, the refund direction will take effect on July 1, 2021, the statement stated.
Smrutirekha Bhoi