Market regulator Sebi today barred Global Mount Money Research and Advisory, its directors and three group firms from acting as investment advisers after they allegedly provided unauthorised investment tips to investors.
The Securities and Exchange Board of India found that these entities were acting as investment advisers without obtaining registration from it, violating Sebi Investment Advisers Regulations.
Global Mount and its directors have solicited and induced investors to deal in securities on the basis of their investment advices and stock trade tips among others through SMS/calls.
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It observed that investors could be misled on account of such unauthorised activities of such unregistered entities.
"...It is evident that the activities of Global Mount, its related/group entities and its directors/proprietor/ partners, of giving trading tips, stock specific recommendations, etc to the investors clearly indicate that they are engaged in providing investment advisory services to investors on payment of fees," Sebi said.
Accordingly, Sebi has asked Global Mount Money Research and Advisory, Global Mount Money Research and Advisory, Global Money Research and Advisory and Global Money Financial Services and its promoters/directors -- Rajeev Singh Rajput, Arpit Kothari and Ajay Kumar -- "to cease and desist from acting as investment adviser".
Also, it directed these entities to "cease to solicit or undertake such activities or any other registered activities in the securities market, directly or indirectly in any manner whatsoever".
Further, Sebi asked these entities to immediately withdraw and remove all advertisements, representations etc in relation to their investment advisory or any unregistered activity in the securities markets.
The order would come into force with immediate effect.
