Moneycontrol
Get App
Last Updated : Jan 20, 2017 09:37 PM IST | Source: PTI

Sebi extends ban on CapitalVia from taking up new advisory biz

Taking note of the serious violations, Sebi today barred CapitalVia Global Research and its three directors for four more months from taking up any new advisory business.


Taking note of the serious violations, Sebi today barred CapitalVia Global Research and its three directors for four more months from taking up any new advisory business.


CapitalVia will have to discontinue the acceptance of funds from clients including by way of deactivation of online remittances, with immediate effect, during the four months period.


The markets regulator, in November, had barred CapitalVia Global Research and its three directors from underaking any new advisory business. It was alleged that CapitalVia charged a fee of Rs 25 lakh for their services rendered, wherein they promised an assured return of 10 percent.

Close

A Sebi probe had found that CapitalVia failed to comply with regulatory requirements prescribed in Investment Advisers Regulations such as Know Your Client (KYC) requirements, risk profiling, suitability of the advice and maintenance of records, segregating investment advisory and execution services and compliance with qualification and certification requirements.


In an order passed today, Sebi said that the "directions not to solicit or undertake any fresh advisory business shall continue against CapitalVia and ... directors for another period of four months".


The company has been directed to disclose the contents of these directions prominently on its website(s) immediately, Sebi said in an order.


"Amongst the violations, the most serious violation is of non-disclosure to the clients including non-dissemination of restraint orders of Sebi, followed by the improper risk evaluation and dissemination processes.

"Though I take on record, the rectification measures adopted by CapitalVia with respect to maintenance of records, KYC details, obtaining certifications and compliance with the conditions of registration, CapitalVia needs to exercise a better sense of responsibility towards its clients and adhere to the mandates of the IA Regulations by strict compliance," Sebi Whole Time Member G Mahalingam said.



Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
First Published on Jan 20, 2017 09:32 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant