The order comes from an interim order-cum-show-cause notice dated February 7, 2020 passed by Sebi against Profit Redefine Financial Solution (PRFS), its sole proprietor Sanjay Yadav and other entities.
In its interim order, Sebi said PRFS services in the securities market and investment advisory plans floated by the notices were prima facie found to be as fraudulent practice and unregistered investment advisory activity.
The regulator also noted, notices have already been restrained from accessing the securities market through the interim order.
In its final order, the regulator found PRFS and Yadav were engaged in the business of providing investment advice to public in lieu of consideration and were thus, acting as an ‘investment adviser’.
However, they were not holding any certificate of registration from Sebi to act as an Investment Advisor (IA), the regulator noted.
The amount of money prima facie observed to have been collected by PRFS and its proprietor Sanjay Yadav was Rs 1.56 crore for the period from June 2016 to May 2019.
Through such acts, they violated the provisions of IA norms and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules, it added.
Profit Redefine and Yadav are collectively referred to as notices.
In its order, Sebi has directed notices, within three months, to refund the money received from the investors as fees in respect of their unregistered advisory activities.
They have been restrained 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 till the expiry of six months from the date of completion of refunds to investors…whichever is later.
In addition, they have been restrained from selling their properties, securities and mutual funds holding except for the sole purpose of making the refunds.