Sebi has barred StarIndia Market Research proprietor Dharmendra Kumar from taking fresh clients for investment advisory services as he misrepresented the regulator his experience details at the time of seeking registration.
Besides, the markets regulator said Kumar defrauded investors by promising assured returns on investments in the securities market and charging them unreasonable fees.
The order comes following complaints received against StarIndia in SCORES portal wherein allegations with regard to fraud and non-rendering of services have been made against the investment advisor.
A Sebi probe, prima facie, found that Kumar did not meet the minimum requirement of five years' experience and knowingly misrepresented his experience details to the regulator while seeking registration.
"It can be, prima facie, held that the noticee (Kumar), by submitting incorrect information has obtained registration from Sebi as an investment adviser and has, prima facie, violated... the IA Regulations," the regulator said in an order passed on Wednesday.
"Further, there are also the, prima facie, findings that the noticee is defrauding investors by assuring returns on investments in the securities market and charging them unreasonable fees," it added.
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Accordingly, Sebi said Kumar and "any other employee/ person working under him/ under his instructions shall cease and desist from soliciting/ acquiring any fresh clients for investment advisory services and undertaking the activity of acting and representing through any media (physical or digital) as an investment advisor, directly or indirectly, in any manner whatsoever till further directions".
Further, they have been asked to "cease and desist from offering any new investment advisory services to its existing clients for which fresh payment is required to be made by these client".
The services for which the existing clients have already made payment will be delivered to these clients and no renewal of these services have been permitted.
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