New Delhi, Jan 24 (PTI) Sebi on Monday barred Capital Exchange India and its partners from the securities market for six months for providing unauthorised investment advisory services and directed them to refund investors' money.

Capital Exchange India, which is partnership firm of Mayuri Verma, Ankit Mishra and Nirmit Daheriya, was engaged in giving advice relating to investing in, purchasing, selling or otherwise dealing in securities or investment products in lieu of consideration, through its website.

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Sebi noted that the company and its partners were holding themselves out and were acting as an Investment Adviser (IA) although they were not registered with the regulator in the capacity of IA as mandated under the rules, according to an order.

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By indulging in such activities, they violated the provision of IA norms and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.

The regulator noted that Capital Exchange India had received over Rs 23 lakh during May-August 9, 2019 through investment advisory services.

In its order, Sebi has directed Capital Exchange India and its partners, within a period of three months, to refund the money received from the investors as fees in respect of their unregistered investment advisory activities.

Also, they have been prohibited from accessing as well as dealing in the securities market directly or indirectly in any manner for six months or till the expiry of six months from the date of completion of refunds to investors whichever is later.

The directions related to refunding of money will come into force from February 28.

In a separate order, the regulator has directed Fast Track Finsec Private Limited (FTFPL) not to take up any new assignment relating to merchant banking activities in the securities market till further orders.

FTFPL acted as the manager to the open offer made, in terms of SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 by the respective acquirers in the target companies - Sea Gold Infrastructures and AKM Lace and Embrotex.

Under the Takeover Regulations, acquirers making an open have to file a draft letter of offer with Sebi, through the manager to the open offer, containing such information as specified.

During the course of processing of the draft letter of offers filed by FTFPL on behalf of the respective acquirers in the target companies, it was observed that there was a delay in making the public announcement, Sebi noted.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)