Sebi bans Tradebizz Research proprietor for 3 years for fraudulent trading

Sebi on Wednesday barred the proprietor of investment advisory firm Tradebizz Research from the securities market for three years for fraudulent trading activities while providing investment advisory services to its clients.

Besides, the individual -- Sanjay Singh Parihar -- has been directed to resolve the complaints pending against him in the SCORES within 30 days from the date of the order.

In August 2019, the regulator had passed an ex-parte interim order against Tradebizz Research and Parihar (noticee), directing them not to access the securities market till further directions.

Parihar had promised assured and guaranteed returns to its client and charged unreasonable fees for such services, Sebi noted.

Among others, it was also observed that he was charging fees under various additional heads, which apparently do not seem to be connected to the service of an investment adviser.

Citing the interim order, Sebi said the information taken from SCORES during the relevant time had indicated that the noticee had not resolved the grievance of its clients within the prescribed timelines.

Besides, Parihar had sold high risk products to its clients whose risk profiling did not qualify to be eligible and categorised for high risk products, the order noted.

While imposing the three-year ban, Sebi said the noticee not only failed in observing due care and fairness in conduct but also indulged in fraudulent and misleading acts knowingly to induce investors to trade in the securities market under the temptation of earning unexpected return on their investment.

The period of restraint already undergone on account of the interim order would be adjusted in the three-year ban period.

In another order, Sebi, on Wednesday, barred six individuals and two entities from accessing the securities market for a period ranging six months to one year.

It was found that they had indulged in manipulative trading activities in the shares of Surabhi Chemicals & Investments Ltd.

By manipulating the price of the scrip of Surabhi upwards and creating a misleading appearance of trading in the scrip by executing such fraudulent trades in small quantities they violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.