The market regulator, SEBI, barred Profit Money Advisor and its owner from trading in the stock market on Thursday.
According to SEBI's preliminary investigation, PMA and its proprietor Shri. Prateek Singh held themselves out as Investment Advisers and provided tips and trading calls in the securities market without obtaining registration under the SEBI (Investment Advisers) Regulations, 2013.
Neither PMA nor its proprietor Shri. Prateek Singh is registered with SEBI in any capacity, according to the registered intermediary database on the SEBI website.
The PMA website was examined, and it was discovered that the website https://.profitmoneyadvisor.net is no longer operational, despite the fact that it was active until December 2020.
PMA's argument to provide a clear monthly return on clients' investments, according to the regulator, is prima facie active concealment of the material fact that any investment in the sector is subject to market risk. Sebi also told them not to divert any funds raised from investors that were kept in bank accounts and/or in their custody, according to the order.
Furthermore, they have been asked to withdraw and delete all advertising, representations, literature, brochures, materials, journals, records, emails, and any materials related to their investment advisory activities or any other activity in the stock market immediately.
Before seeking advice from any consultant, investors should exercise caution and do their own analysis.