Ban of Stock Indication their partners from the Capital Market

Market Regulator, Securities and Exchange Board of India (SEBI), banned Stock Indication and their two partners on 28 November till further notice.

The Bangalore-based firm is not registered with SEBI and has been found to act as an advisory.

SEBI asked them to file their reply in 21 days in an interim order that states, The activities of Stock Indication including its partners Mohd. Tanveer Ahmed and Sunny Gupta are prima facie in violation of Investment Advisers (IA) Regulations.

According to Investment Advisers (IA) rules, all IAs must register with SEBI to offer investment advice or recommend any fund to customers. Therefore, as a firm not under the purview of the regulator, the company prima-facie violated IA guidelines.

Upon receiving a complaint from an investor, they investigated the company and partners and found that they were offering investment tips and fund recommendations for a fee, promising high returns.

In addition, SEBI also discovered that the company had accumulated close to Rs. 253 lakhs in four bank
accounts. Besides banning the company, they have also instructed the banks to freeze the accounts.

Entities like Global Enterprises, Sankalp Garg and Sajjan Kedia also faced bans for four years – for manipulation of scrip prices.

Similarly, Suvidha Securities received a hefty fine of Rs. 5 lakhs for not submitting requested information on an Initial Public Offering (IPO).

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