Four companies have been barred from the security market by the Securities and Exchange Board of India (SEBI) for providing unlicensed investment advisory services without the approval of the regulator.
PNP Shareon Solutions, its owner Pradeep Haldar, PNP Solutions, and its owner Prakash Haldar are the four businesses that Sebi has placed on a six-month ban.
The capital markets regulator found that the four companies had provided investment advisory services without obtaining a certificate from Sebi, in violation of IA (Investment Advisers) rules. It also found that between September 2017 and June 2020, the four entities known as notices had collected 60.49 lakh rupees.
The noticees have also been given a three-month deadline by Sebi to return the funds they collected in exchange for investment advisory services.
The noticees have been banned from accessing and dealing in the securities market for a period of six months from the date of completion of refunds to investors and depositing of balance amounts, whichever is later.
Furthermore, they have also been directed to not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from Sebi during or after the debarment period.
The proceedings had begun from a show cause notice by Sebi to the noticees in August 2021.
The noticees are prohibited from dealing in securities for a period of six months beginning with the date of completion of investor refunds or deposit of balances, whichever comes first.
In addition, they have been instructed not to engage in securities market activities or provide investment advisory services without first obtaining a certificate of registration from Sebi during or after the debarment period.
In August 2021, a show cause notice sent by Sebi to the noticees marked the beginning of the proceedings.