Finfluencer PR Sundar And Mansun Consulting Settle Sebi Case, Pay Rs 6 Crore Disgorgement

Financial influencer (Finfluencer) PR Sundar, his company Mansun Consulting, and co-promoter of the company Mangayarkarasi Sundar have settled a case involving a violation of Sebi regulations by providing investment advisory services without the necessary Sebi registration.

As per the Sebi settlement order, the three parties involved have consented to a set of conditions. These include abstaining from purchasing, selling, or engaging in any transactions related to securities for a duration of one year from the settlement order's date. Additionally, they are obligated to pay a settlement sum and disgorge over Rs 6 crore, comprising the profits earned from providing advisory services and the interest accrued on those profits.

According to the decision, each of the three entities must pay a settlement sum of Rs 15.60 lakh, for a total of Rs 46.80 lakh. They would have to pay Rs 6,07,69,863 in disgorgement, plus interest at 12% per annum from June 1, 2020 to the date of submission of the revised settlement terms (RST), which was reached in February 2023.

FinFluencers are individuals that provide information and advise to investors on financial matters, notably stock market trading, mutual funds, and insurance, for a fee via various social media platforms such as Facebook or Twitter.

After receiving the settlement applications, the applicants' representatives engaged in a meeting with SEBI's Internal Committee on January 18, 2023, where they discussed the terms of settlement.

According to the order, "The committee reviewed the factors outlined in Regulation 10 and Schedule II of the Settlement Regulations and authorized the Applicants to submit revised settlement terms." Subsequently, the High-Powered Advisory Committee of SEBI reviewed the revised settlement terms proposed by the applicants during its meeting on February 22, 2023, and recommended the case for settlement. "In terms of Regulation 15 of the Settlement Regulations, the panel of Whole Time Members of SEBI approved and accepted the recommendation of the HPAC on April 3, 2023 and the same was communicated to the applicants on April 06, 2023," it said.

The order stated that Sebi will not take any further enforcement action against the applicants (Sundar and others) for the aforementioned violation, and that the issuance of this order is without prejudice to SEBI's right under Regulation 28 of the settlement regulations to take any further enforcement action against the applicants if SEBI finds that any representations made by the applicants in the settlement proceedings are later found to be false. It will take action if the applicants violate any of the articles, conditions of undertakings, or waivers filed during the current settlement processes, or if there is a discrepancy in determining the settlement terms.