Sebi crackdown on unlicensed investment advisors: Rs 82 lakh in refunds for teachers and associates

 Sebi crackdown on unlicensed investment advisors: Rs 82 lakh in refunds for teachers and associates

 Sebi crackdown on unlicensed investment advisors: Rs 82 lakh in refunds for teachers and associates

Additionally, each have a two-year ban on the securities market.

The regulator received a complaint in January 2021 and immediately began looking into his firm.

It has been requested that a school teacher and his business partner repay more than Rs 82 lakh that was taken in fees for offering unauthorized, unregistered investment advising services via W Gain Research and Development.com.

Additionally, each have a two-year ban on the securities market.

at an order dated December 5, the Securities and Exchange Board of India (SEBI) claimed that Chandrapratap Singh Naruka—who was also working as a teacher at a Dewar school registered with the CBSE—and his friend, Amarjeet Singh Trehan, were responsible for collecting the money. Was Rs 82,52,620 obtained over almost three years via illicit advice. In addition to requesting that the pair refund the money, the regulator fined Trehan and Naruka Rs 2 lakh each.

The regulator had received a complaint submitted in January 2021 and had opened an inquiry into his firm. Arvind Joshi, the complainant, said Trehan had promised him a spot in the first public sale.

Joshi said that after receiving investment advice from W Gain for a cost of Rs 90,000, he had lost Rs 4 lakh. He attempted to recoup the loss via IPO allotment, for which he had paid Rs 44,415 plus transfer. completed. Suggestions.

However, Trehan turned down Joshi's request for a refund when he failed to get the allocation.

incorrect direction is unsuccessful

Attempting to "mislead" the regulator, Naruka claimed it only operated one coaching facility, We Gain Research and Development. com, which has a name like to Illegal Advice. However, the endeavor proved unsuccessful.

He said in his submission that he founded We Gain "to provide education and technical knowledge" and that the money he obtained from individuals were used to finance investments in the coaching center.

However, SEBI's inquiry revealed that the bank accounts used for the payments were created in the advisory's name rather than the coaching center's.