After IA pledged to use the stock market to "fulfill dreams," SEBI revoked registration
 |
| After IA pledged to use the stock market to "fulfill dreams," SEBI revoked registration |
Trade India Research found breaking many IA guidelines.
The court ruled that IA "modified or manipulated the risk profile of clients to sell consultancy products and maximize its revenues as well as provided the service without client consent."
Neha Gupta's investment advisor, Trade India Research, has had its registration revoked by the market regulator for a number of infractions against IA regulations, including charging clients unjust and disproportionate fees, promising clients astronomical and excessive returns—even "dream come true"—and deceiving clients about the scope of operations.
It was discovered that the IA had repeatedly exaggerated the size of its personnel, saying in its marketing that it employed more than 750 individuals, even though its legal filings indicated it only employed 200.
The Securities and Exchange Board of India (SEBI) revoked Trade India Research's registration certificate (registration number: INA000003064) in a decision dated November 30.
IA said in an advertising that they were registered with SEBI and that they would "fulfill" the desires of generating money from the stock market.
"Phrases like 'Here we fulfill your aspirations of making money from the stock market' constitute tantamount to offering assured returns as well as may influence the choice of the shareholder to invest money," the judgment said.
According to the report, the mention of SEBI seems to be an effort to "gain confidence" in the market regulator's name.
Additionally, it was discovered that IA had abused its operational size to deceive investors.
The judgment said that the IA had promoted itself as "a strong entity with functioning offices in India and a team size of over 750, involving over 60 people in core research."
But it became out that this was untrue when the IA's Legal and Compliance Manager was questioned.
"He said that it is also untrue what more than sixty employees in the primary research and many operational offices in India claimed. Therefore, by making exaggerated statements on its website, the Noticee (IA) has deceived prospective clients/customers. Additionally, the notice receiver employed 200 people according to a Gumashta certificate and was located at 301, 3rd Floor, Mangal City Mall, Vijay Nagar, Indore - 45, 2010.
It was discovered that the IA had neglected to inform customers about the risk profiles given to them and to implement suitable risk profiling procedures for its clients.
The court ruled that IA "modified or manipulated the risk profile of clients to sell consulting products and maximize its revenues as well as provided the service without client consent."
Additionally, the SEBI investigator discovered that Neha Gupta, the owner of IA, concealed crucial information from her IA registration application, failing to disclose that her spouse Pradhumna Agarwal had been the subject of a cease-and-desist order.
issued an order dated December 2, 2014, prohibiting Pradhumna Agarwal, in her capacity as Director of Moneyworld Research and Advisory, from soliciting or carrying out any kind of unregistered activity in the securities market, including serving as an investment adviser. Having said. in any manner, whether directly or indirectly.
