Markets regulator Sebi today barred Cypress Money Investment Advisor and its three partners from acting as investment advisors and research analyst after finding them guilty of providing unauthorised trading tips to investors.
Sebi found that the entities were acting as investment advisors and research analyst without securing registration from the regulator.
By indulging in such activities, they have violated the regulator's investment advisors as well as research analyst services norms.
"It is, prima facie, observed that Cypress Money and its partners are engaged in providing investment advisory services to investors on payment of fees...They are offering stock recommendations and technical and fundamental calls... Which fall under the definition of 'research analyst'," Sebi Whole- Time Member G Mahalingam said in an order.
He further said "there is no other alternative but to take recourse through an ad interim ex-parte order against Cypress Money and its partners -- Anubhav Kandpal, Saumya Kala and Suman Kala -- for preventing them from collecting funds and indulging in unauthorised investment advisory and research analyst activities without obtaining registration from Sebi".
Accordingly, these entities have been ordered "to cease and desist" from acting as investment advisor or research analyst as well as undertaking such activities in the securities market, directly or indirectly.
Furthermore, they have been directed not to divert any funds raised from investors that are kept in bank accounts or in their custody.
Besides, the watchdog has asked the firm and its partners to immediately withdraw and remove all advertisements, representations and the like in relation to their investment advisory or any unregistered activity in the securities market.
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