Markets regulator Sebi today barred MMF Solutions and its proprietor Priyansh Patodi from acting as investment adviser, portfolio manager and research analyst for providing "unauthorised" services to investors.
The regulator found that MMF Solutions and Patodi were giving trading tips, stock specific recommendations, to investors, on payment of fees as per the pricing plans.
Besides, they were broadcasting daily SMS containing equity tips and market updates and issuing weekly reports to the investors.
In addition, MMF Solutions were also offering 'Portfolio Management Services' to the public.
They have been acting as an investment adviser, portfolio manager and research analyst without obtaining registration from the Securities and Exchange Board of India (Sebi) and violated regulations.
"This is also a case where effective and expeditious action is required to be taken to prevent any possible harm to investors caused by the unauthorised activities of MMF Solutions and Patodi," Sebi said in an order.
Accordingly, Sebi has directed the entities "to cease and desist" from acting as investment adviser, research analyst and portfolio manager and "cease to solicit or undertake such activities or any other registered activities in the securities market, directly or indirectly in any manner whatsoever".
Besides, Sebi has directed them to immediately withdraw and remove all advertisements, representations etc in relation to their investment advisory or any unregistered activity in the securities markets.
It has been directed not to divert any funds raised from investors, kept in bank account or in the custody of MMF Solutions and Patodi.
The order would come into force with immediate effect and the directions issued would continue till further orders.
