Sebi, prima facie, found that Profit Mount and Right Target had collected nearly Rs 41 lakh and close to Rs 44 lakh, respectively, from investors through such services.(REUTERS)
Sebi, prima facie, found that Profit Mount and Right Target had collected nearly Rs 41 lakh and close to Rs 44 lakh, respectively, from investors through such services.(REUTERS)

Sebi bans Profit Mount, Right Target for providing unauthorised services

The direction comes after Securities and Exchange Board of India (Sebi) received complaint against Profit Mount and Right Target, alleging that these are unregistered entities.
New Delhi | By Press Trust of India | Posted by Nilavro Ghosh
PUBLISHED ON DEC 11, 2020 03:10 PM IST

Regulator Sebi has barred Profit Mount Advisory Service and Right Target Advisory Service from the capital markets for providing unauthorised trading tips to investors.

In addition, Profit Mount’s proprietor and partners of Right Target have also been restrained from the capital markets.

Besides, they are prohibited from carrying out investment advisory services till further orders.

The direction comes after Securities and Exchange Board of India (Sebi) received complaint against Profit Mount and Right Target, alleging that these are unregistered entities.

Pursuant to this, Sebi conducted the preliminary examination and found that the two Tamil Nadu-based entities were soliciting and inducing investors to deal in the securities market on the basis of investment advice, stock tips, intraday calls among others, prima facie, without having the requisite registration as mandated under the IA norms.

Sebi, prima facie, found that Profit Mount and Right Target had collected nearly Rs 41 lakh and close to Rs 44 lakh, respectively, from investors through such services.

By indulging in such activities, they violated the provisions of investment advisers (IA) Regulations, Sebi said in two separate interim orders on Wednesday.

Accordingly, the regulator directed Profit Mount, its proprietor M Ashok Kumar; Right Target, its partners -- D Saravanan, D Murugan, D Kumar and M Ashok Kumar -- to “cease and desist from acting as an investment advisor” until further orders.

They have been asked to immediately withdraw and remove all advertisements in relation to their investment advisory activity until further orders.

Further, the regulator prohibited them from diverting any funds raised from investors and restrained from disposing of any assets, whether movable or immovable, including money lying in bank accounts, except with the prior permission of Sebi.

Sebi asked them “not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders”.

In a separate order on Thursday, the regulator imposed a penalty of Rs 5 lakh on Acumen Capital Market (India) Pvt Ltd for violating provisions of the Securities Contracts (Regulation) Act and depositories rules.

It found that Acumen Capital did not correctly reported margin to the exchange, did not dispatch the transaction statement to beneficial owners on a monthly basis and made the delay in uploading client details in CKYC (central know your customer) system.

In addition, Sebi said the entity failed to settle the funds of its clients and the regulator noted absence of availability of the call recording system of clients for all locations.

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