Unauthorized Investment Advisory Services: Capital market regulator SEBI has banned four companies from the securities markets for six months for providing investment consultancy service without approval.
The Securities and Exchange Board of India (SEBI) has barred Course Work Focus and its owner Shashank Hirwani, Capital Research owner Gopal Gupta and Cappers owner Rahul Patel from participating in the securities market for six months.
Raised over Rs 96 lakh from investors
In two separate orders passed by SEBI, SEBI found in its investigation that these companies were engaged in unauthorized investment advisor services without obtaining certificates as investment advisors. According to the market regulator, Coursework Focus and Hirwani had collectively raised over Rs 96 lakh from investors during March 2018 to July 2020.
Apart from this, Gupta and Patel together collected Rs 60.84 lakh from investors between June 2014 and November 2019. Sebi, in its final order passed on Wednesday, said that by such actions the companies have violated the IA (Investment Advisor) rules. SEBI, in its order, has directed the companies to refund investors’ money paid for such services within three months.
