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The interim order passed against an unregistered investment advisory service for violation of SEBI guidelines and regulations -THE SECURITIES AND EXCHANGE BOARD OF INDIA

The interim order passed against an unregistered investment advisory service for violation of SEBI guidelines and regulations -THE SECURITIES AND EXCHANGE BOARD OF INDIA

A complaint was made against a firm named ‘NIFM Research’ and allegations were made that the firm gave free tips to invest to the complainant and directed for the subscription fees In the account of Mr. Krishnamurthy G and the complainant made further allegations that he lost money while acting upon the recommendations and his request for refund of subscription fees was not heard. Acting upon the complaint an investigation was ordered by the whole-time member S. K. MOHANTY in application no. – WTM/SM/SRO/SRO/14716/2021-22

The preliminary examination showed that there are no records in its registered Intermediary database against the name ‘NIFM Research’ or ‘Krishnamurthy G’ and showed that they are not registered with  SEBI and the firm’s website is offering various investment advisory packages in different segments of the securities market and showed that the pa and showed that the payment made by the clients are transferred to Krishnamurthy bank account and It was further observed during an examination that Krishnamurthy was not registered with SEBI to act as an Investment Adviser in the securities markets and at the investment time several misleading claims were made for the payment of clients.

From the investigation it is crystal clear that  Krishnamurthy was continuously luring gullible investors by offering investment advisory tips through the aforesaid website operated by him and was continuously collecting monies from the investors by offering them various investment packages in an unauthorized manner and therefore an interim order passed under Sections 11, 11(4), 11B(1) and 11D of the Securities and Exchange Board of India Act, 1992 and  Krishnamurthy were prima facie found to violate the provisions of Section 12(1) of the SEBI Act read with Regulation 3(1) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 to prevent Krishnamurthy from carrying on those illegal investment advisory services, which were prima-facie found to be being undertaken in violation of the provisions of SEBI Act and IA Regulations, 2013.

Click here to read the order

Order reviewed by Naveen Sharma

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