NEW DELHI: Markets regulator Sebi has barred Yash Chawla, proprietor of Khelo MCX Research Services, from acting as an investment advisor for providing unauthorised trading tips to investors. Also, he has been barred from the capital markets till further orders, Sebi said in an interim order.
The regulator found that Chawla was giving trading tips, stock specific recommendations, among others, to investors and general public by charging fees from them. Through such services, he collected over Rs 1.25 crore.
He was providing such services without obtaining registration from Sebi.
“These activities/ representations without holding the certificate of registration as investment adviser is prima facie, in violation…of the IA (investment advisor) Regulations,” the regulator said in an interim order passed on Friday.
Besides, Chawla was assuring his clients of 100 per cent return, which is misleading and deceptive act and has been prima facie made with an intent to influence the client to avail its advisory services.
Through this act, Chawla, prima facie, violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Accordingly, Chawla has been directed to “cease and desist from acting as an investment advisor”, a Sebi order said. Also, he has been barred from divert any funds raised from investors, kept in bank account(s) and/or in his custody until further orders.
Further, he has been restrained from disposing of any assets, whether movable or immovable, or any interest or investment or charge on any of such assets held in his name, including money lying in bank accounts except with the prior permission of Sebi.
The regulator ordered to immediately withdraw and remove all advertisements, representations, brochures, documents, communications in relation to his investment advisory activity or any other unregistered activity in the securities market.
These directions will be in force until further orders, the Securities and Exchange Board of India (Sebi) said.
In a separate order on Tuesday, Sebi has relaxed delisting conditions for Aaradhana Realities Ltd.
Sebi said it agreed with the substantial submission of the company that no purpose would be served to retain the Company as a listed entity, as it does not have any public shareholder.
The regulator has granted “the applicant Company i.e. Aaradhana Realties Limited, relaxation from the requirement of providing exit offer… and incidental / consequential requirements thereof and to proceed with delisting.”
The relaxation has been given subject to certain conditions.