SEBI bars entity, nine individuals from securities market for fraudulent activities

NEW DELHI: Sebi has barred Money Maker Research Pvt Ltd and nine individuals from the securities market for indulging in fraudulent trading activities while providing investment advisory services.

Money Maker and its directors -- Chandni Paryani and Abhisekh Tiwari -- have been directed to cease and desist from acting as investment advisors until further orders, as per an interim order passed on Friday.

An inspection was carried out by the Securities and Exchange Board of India (Sebi) from April 2018 to March 2019 period.

During this period, the watchdog observed that Money Maker was actually not practicing investment advisory in the manner envisaged under the IA (Investment Adviser) norms.

Among others, it was found that the entity was charging fees from clients that were disproportionate to their annual income/ proposed investment.

The regulator noted that Money Maker was knowingly selling multiple subscriptions of the same product/ service to same clients for future period while an existing subscription was still active, which has the effect of locking in the client to the IA.

The firm and individuals were found to have violated IA as well as Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

The entity and nine individuals have been barred from the securities market until further orders.

Sebi has directed Money Maker, Paryani and Tiwari to "immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications in relation to their investment advisory activity or any other unregistered activity in the securities market until further orders".

Besides, they have been asked not to divert any funds raised from investors.