Sebi bans Stock Indication, its two partners from the securities market

Team Udayavani, Nov 29, 2018, 12:08 PM IST

Bengaluru: Market regulator Sebi on Wednesday banned Bengaluru-based Stock Indication and its two partners from the securities market “till further orders” for acting as an investment adviser without registering with the watchdog.

Besides, Sebi asked why any direction to refund the amount collected by them from the clients for its various schemes should not be issued against them and directed to file reply in 21 days from the date of the order.

In an interim order, the regulator said, “The activities of Stock Indication including its partners Mohd. Tanveer Ahmed and Sunny Gupta are prima facie in violation of IA (Investment Advisers) Regulations.”

Under Investment Advisers (IA) regulations, it is mandatory for IA to register with Sebi for providing services to the clients.

The regulator on a complaint conducted an investigation regarding the entities and found that it was providing investment tips to its clients and charged a fee promising good profits in investing in the Stock Indication. Besides the regulator noticed that it has collected over Rs 25.3 million in four bank accounts.

As the firm was not registered with the Sebi, it “prima-facie” violated IA norms, the regulator said.