Market regulator Sebi Thursday barred Sanjay Singh Parihar, proprietor of investment advisory firm Tradebizz Research, from securities markets till further directions.
Besides, Sebi directed Parihar to not dispose of or alienate any asset held in his name or his proprietary firm Tradebizz Research.
The interim direction comes after the regulator prima facie found the investment adviser in violations of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms as well as Investment Advisor (IA) regulations, Sebi said.
Based on the examination, Sebi prima facie found that many of Tradebizz's clients have been sold services promising assured profit and unrealistic returns irrespective of their financial situation, investment objective and risk profiling.
Moreover, it appears that Tradebizz was running a pre-meditated device, plan or scheme where under, the telecallers of the advisory firm would lure gullible investors by promising assured profits, unrealistic returns and then more money would be extracted from them by upgrading them from one package to another, among other things, the regulator said.
"The conduct/actions of the IA (Investment Adviser) are prima facie in contravention of provisions of PFUTP Regulations and IA Regulations.
"Thus, in order to prevent existing clients as well as prospective clients from the activities of the IA which are prima facie fraudulent and in violation of IA Regulations, immediate steps need to be taken against the IA", Sebi said in an order.
Accordingly, "Santosh Singh Parihar, proprietor of Tradebizz Research, is restrained from buying, selling or dealing in the securities market...till further directions," the Securities and Exchange Board of India (Sebi) said.
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