 "BSE")
Capital markets regulator Sebi has barred DS Capital Venture and its directors from the securities markets for three years for violating regulatory norms.
DS Capital Venture (DS Capital) is registered as an Sebi-investment adviser and its directors are Sanjay Dwivedi, Piyush Kumar Sharma, Deepali Sharma and Abhishek Tiwari.
Sebi in May 2019 to January 2020 had received investor complaints against DS Capital. The complaints received on SCORES were sent to DS capital so as to be redressed by it. However, despite sending reminders to the company, it did not redress the complaints.
Accordingly, an inspection of DS Capital was approved by the regulator to examine the compliance of IA (Investment Advisers) regulations.
In its final order, Sebi said DS Capital failed to redress the investors grievances but is also found to be misleading its clients with respect to their dealing in securities by availing its advisory services, thereby violating PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.
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Further, by submitting wrong information and its failure to update the material information with the regulator, it leads to an inference that DS Capital was not transparent in its dealings with the market watchdog, it added.
The IA norms have been drafted not only to protect the interest of investors but also to bring in transparency and accountability in the functioning of investment advisers.
However, DS Capital has failed to live upto the standards and objectives of IA rules and hence violated the market norms, Sebi said in its order passed on Thursday.
The regulator also noted that the acts which are executed in the name of the firm are done by the natural persons who by their own minds and wisdom, are controlling the affairs and management of the firm in the capacity of its directors.
Through such acts, Dwivedi, Tiwari, Piyush Kumar Sharma and Deepali have violated the norms.
Sebi has restrained the company and its directors from accessing as well as dealing in the securities markets for a period of five years from the date of this order.
The regulator also prohibited Dwivedi, Tiwari, Piyush Kumar Sharma and Deepali Sharma from holding any managerial position or associating themselves with any intermediary registered with Sebi, in any capacity for a period of five years.
Further, it directed DS Capital to resolve the complaints pending against it on the SCORES within the period of 30 days from the date of this order.
If DS Capital does not comply with the directions, then it shall be restrained from securities markets for an additional period of three years.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
