Financial services

SEBI bans Wishworth Financial Services from the securities market for 4 years

Sebi on Friday banned Wishworth Financial Services and their owners Pankaj Khanchandani and Dheeraj Kapoor from accessing securities markets for four years and ordered them to return money raised through unauthorized investment advisory services.

A complaint filed on October 24, 2017 alleged that Wishworth offered financial investment plans with assured returns.

Pursuant to receipt of the complaint, Sebi conducted a review of the matter and subsequently issued a show cause notice dated January 20, 2022 to those notified.

The regulator concluded that the notifyees – Wishworth and their owners – were in the business of providing investment advice to their clients for a fee and were therefore acting as an investment adviser.

They have been involved in such investment advisory activities without obtaining a certificate of registration from the regulator, which is in violation of the provisions of the Investment Adviser (IA) rules, the Securities and Exchange Board of India said in its arrangement.

Through these services, they received a total amount of more than Rs 10 crore from July 2017 to February 2020 through unregistered investment advisory services, he added.

As a result, Sebi said, the “Notified Parties shall, within three months…jointly and severally, repay any monies received from any Complaint/Investor, in the form of fees or consideration or any other form, with respect to their unregistered consultancy activities”. .

In addition, they were denied access to securities markets for four years or until the expiration of four years from the date of completion of redemptions to investors, whichever is later. late.

In a separate order, the regulator fined four entities Rs 11 lakh for breaching insider trading standards in the SRS Ltd case.

The order came after Sebi conducted an investigation regarding the trading of SRS Ltd certificates during the period from February 2016 to June 2017.

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