NEW DELHI, July 11: Markets regulator Sebi today imposed a penalty of Rs 6 lakh on Global Mount Money Research and Advisory and its directors for carrying out unauthorised trading tips.
The fine has been levied on the company and its three directors — Ajay Kumar Gupta, Arpit Kothari and Rajeev Singh Rajput — for violating the provisions of Investment Adviser Regulations.
These entities were soliciting payments against investment advice with various plans in several segments, including stock futures and options from the general public without being registered with Sebi as investment advisers, Sebi noted.
“Noticee 1 (Global Mount) had functioned as an unregistered Investment Adviser in the securities market for a prolonged period,” Sebi Adjudicating Officer Sudeep Mishra said in an order.
“I find that despite repeated instructions issued by Sebi to refrain from undertaking such activities and to comply with the provisions of Investment Advisers Regulations, noticee 1 failed to adhere to the instructions of Sebi and continued to function as an unregistered entity thereby putting the investors to large risk,” he added.
Accordingly, Securities and Exchange Board of India (Sebi) has imposed the penalty on these entities. (PTI)
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