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Sebi bans Profitsaim, proprietor from market for 2 years

SEBI noted that Profitsaim and Ayaz have carried out investment advisory activities without obtaining a certificate of registration from the regulator.

June 29, 2021 / 04:16 PM IST
Sebi | PC-Shutterstock

Sebi | PC-Shutterstock

Sebi has banned Profitsaim and its sole proprietor Syed Ayaz from the securities markets for two years and asked them to refund the money collected from investors for providing unauthorised investment tips. The regulator noted that Profitsaim and Ayaz have carried out investment advisory activities without obtaining a certificate of registration from the regulator.

Profitsaim was providing stock market tips to clients. Also, it was providing services to clients in stock cash, stock future, stock option, index future, index option, bullions, base metals and energy. "Noticees were holding themselves out and acting as an investment adviser. However, it is noted that the noticees is not registered with Sebi in the capacity of Investment advisor," Sebi said in an order on Monday. Profitsaim and Ayaz are collectively referred as noticees.

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They have collected Rs 33.74 lakh by offering services during September 2019 and November 2020, Sebi said. Through such activities, they violated the provisions of investment advisers (IA) Regulations, the Securities and Exchange Board of India (Sebi) said.

"Noticees shall within a period of three months from the date of coming into force of this direction, refund the money received from the clients/investors/complainant, as fees or consideration or in any other form, in respect of their unregistered investment advisory activities," the regulator said. Also, they have been barred from accessing the securities market and further prohibited from buying, selling or dealing in the securities market for two years or till the expiry of two years from the date of completion of refunds to investors, whichever is later.

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In addition, they have been restrained from associating with any listed company or any registered intermediary during such period. The order comes into force with immediate effect, Sebi said.

However, in view of the exceptional circumstances emerged due to the outbreak of a COVID-19 and consequential lockdowns imposed in different parts of the country, the direction related to refund will come into force on July 1, 2021, it added. Through an interim order in November 2020, Sebi had directed them to cease and desist from acting as investment advisors until further orders. Also, they were restrained from the securities market until further orders.

first published: Jun 29, 2021 04:16 pm