Closing its probe into a large scale SMS-based investment scam, regulator Sebi has barred the two masterminds of the scheme from capital markets for five years for luring gullible investors with promise of huge returns through mobile messages.
Sebi probe found that Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala were providing unauthorised intra-day tips and stock advisory services through Short Message Services via mobile phone.
Based on its preliminary probe, Securities and Exchange Board of India had restrained both of them from capital markets by way of an interim order on August 20, 2013. Sebi had passed another order against them on December 30.
In its final order, Sebi has now restrained Khanda and Ghaniwala "from buying, selling or dealing in the securities market, either directly or indirectly in any manner whatsoever, for a period of five years".
The regulator said that "the period of such restraint already undergone by them vide the Sebi interim order dated August 20, 2013 read with the confirmatory order dated December 30, 2013, shall be taken into consideration while computing the above directed period of restraint."
Also, the regulator directed these individuals not to conduct or carry out any activity in the securities market which require obtaining registration certificate from Sebi.
Sebi had noticed that certain entities were offering intra-day tips and stock advisory services through SMSs.
The messages being circulated by them included promises of Rs 5,000-75,000 daily earnings in "equity and MCX market with our confirm intra-day tips" and the investors were asked to call on given numbers for "sure shot call".
