Mumbai: Sebi Wednesday barred Sri Ganesh Stocks and Shares and two individuals from securities market and prohibited them from mobilising funds, as they were allegedly offering unregistered portfolio management services promising high returns.
The regulator's probe followed an advertisement issued by Venkatesan Chandran, who used the trade name, Sri Ganesh Stocks and Shares, and invited the general public to make investments and get assured monthly returns.
According to Sebi, Ganesh Stocks alongwith Chandran and his wife Vijaya Bharathi have solicited and induced their clients and other investors to deal in securities and have also collected funds and deposits from them through misrepresentation and allurement of high returns.
"They also solicited investments from the clients and other investors claiming to give high returns even when Ganesh Stocks alongwith Chandran and Bharathi were not a Sebi registered intermediary," it added.
Chandran claimed himself to be a sub-broker and affiliated to Saravana Stocks. He has collected an amount of around Rs 4.36 crore from his clients and claimed to have repaid Rs 3.71 crore to some of its investors.
Accordingly, Sebi restrained Ganesh Stocks, Chandran and Bharathi from "accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner."
These entities shall cease and desist from undertaking the portfolio management activities or any unregistered activity in the securities market. Besides, the regulator barred them from mobilising funds from the public or offering any portfolio management activities.
Sebi has asked them to immediately withdraw and remove all material information in relation to the portfolio management activities or any unregistered activity in the securities market.
