SEBI Bans 4 Entities From Securities Markets For 6 Months For Unauthorised Investment Advisory Services

The securities and Exchange board of India (SEBI) has barred four entities from the securities markets for a period of six months for providing unauthorised investment advisory services and ordered them to refund investors' money collected through advisory services within three months, with inputs from PTI.

SEBI has restrained Course Work Focus of Shashank Hirwani, Capital Research, its proprietor Gopal Gupta, and Rahul Patel (proprietor of Capres). The regulatory body found out that these entities were engaged in the business of providing investment advice to their clients, for consideration, without obtaining SEBI's registration, through two separate orders,

Course Work Focus and Shashank collectively took over Rs 96 lakh from investors during March 2018 to July 2020, while Capital Research, Gopal and Rahul together received Rs 60.84 lakh between June 2014 and November 2019 by providing unregistered investment advisory services.

Providing unauthorised investment advisory services is an act of violation of the provisions of investment adviser (IA) norms, SEBI said in its final order passed on Wednesday. In its order, SEBI ordered the entities to refund amount received from the clients or investors as fees in respect of their unregistered investment advisory activities within three months.

Additionally, the entities have been prohibited from accessing as well as dealing in the securities market directly or indirectly in any manner for a period of six months or untill ending of six months
from the date of completion of refunds to investors whichever is later.

These orders were passed after SEBI conducted an examination after it received complaints against Capital Research, Capres and Course Work Focus in relation to the alleged activities of unregistered investment advisory services.