NEW DELHI, Dec 3: Luring gullible investors to ‘Fatal Attraction’, a subscription-based stock market service, has landed an investment adviser in the cross hairs of Sebi for repeat violations.
Taking serious note of the individual violating its directions issued more than eight years ago, the watchdog has penalised Anirudh Sethi for Rs 25 lakh.
Right from putting out catchy captions to sensation creating tweets, the person getting into “manipulative techniques using social media is a serious cause of concern in the interest of the markets and its investors”, it said.
In its 25-page order, Sebi observed that Sethi, through the website ‘www.Anirudhsethireport.Com’, is providing subscription based services to general investors under the name ‘Fatal Attraction’. These include providing technical analysis on stocks, futures/options, commodities, and currencies.
‘Whoever wins World Cup, our subscribers will ever be winners’ are among the catchy captions used by Sethi on social media to attract investors, according to the order.
While penalising Sethi, Sebi’s Adjudicating Officer K Saravanan said activities undertaken by the former seriously compromise the regulatory framework and are detrimental to the investor interests.
Despite “repeated directions” to refrain from such activities, Sethi failed to comply and such defiance displayed towards regulatory directions cannot be viewed lightly, Saravanan said in the order.
On his site as well as tweets on ‘anirudhsethi71’, he did not disclose all the sources on the basis of which such articles are published, noted the markets regulator.
“Sethi had committed vide his declaration cum undertaking dated March 12, 2007 that he will restrict his article to technical analysis and give recommendations only on the basis of published corporate information available in the public domain at the time the article is published and reveal the source in the article.
“I observe from the tweets that Noticee has not cited reference to any published corporate information while giving his recommendations,” the order said.
Back in January 2007, the same individual was asked to “cease and desist” from giving investment advice to clients that violates Sebi norms pertaining to fraudulent and unfair trade practices.
The directions were confirmed by the regulator in July 2009.
“After taking into consideration all the facts and circumstances of the case, I impose a penalty of Rs 25,00,000… On Anirudh Sethi, which will be commensurate with the violations committed by him,” Saravanan said in the order, dated November 30. (PTI)
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