Sebi bars Profit Redefine, owner from securities markets for unauthorized investment advisory

Capital markets regulator Sebi on Tuesday barred Profit Redefine Financial Solution and its owner Sanjay Yadav from acting as investment advisers for providing unauthorized trading advice and stock recommendations to investors. In addition, they have been banned from the securities market for six months. The order comes from an interim show-cause notice dated February 7, 2020, issued by Sebi against Profit Redefine Financial Solution (PRFS), its sole proprietor Sanjay Yadav and other entities. In its interim order, Sebi said that PRFS services in the securities market and investment advisory schemes represented by the notifications were prima facie established as fraudulent practice and unregistered investment advisory business.

The regulator also noted that the notifications had already been restricted from accessing the securities market by the interim order. In its final order, the regulator found that PRFS and Yadav were engaged in the business of providing investment advice to the public in lieu of remuneration and thus acted as an “investment adviser”. However, they did not hold a certificate of registration from Sebi to act as an investment adviser (IA), the regulator noted. The amount of money prima facie observed to have been collected by PRFS and its owner Sanjay Yadav is Rs 1.56 crore for the period from June 2016 to May 2019. By such actions they are violating the provisions of the norms of IA and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules are added.

Profit Redefine and Yadav are collectively referred to as notices. In its order, Sebi has given notice within three months to refund the money received from the investors as fees in respect of their unregistered advisory activities. They are restricted from accessing as well as dealing in the securities market directly or indirectly in any manner for six months from the date of this order or until the expiry of six months from the date of completion of refund of investors …whichever is later. They are also prohibited from selling their properties, securities and mutual funds except for the sole purpose of recovering the amounts.

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