Market Regulatory Board SEBI has barred Bullmatics Advisory Pvt Ltd and its directors from the securities market for six months. That is because they were providing unauthorized investment advisory services. Furthermore, they directed these services to refund the money of the investors. This decision was taken in January 2022.
What happened with Bullmatics Advisory Pvt Ltd?
Bullmatics Advisory Pvt Ltd did not have proper SEBI registration to engage in investment advisory services. Ajitesh Kumar and Triloki Nath Verma are the directors of this company who run the business. Both are responsible for the activities associated with it. They have violated the provisions. These provisions come under the Investment Adviser (IA) norms. It is through such acts under SEBI regulations. This crime was unveiled by the Securities and Board Exchange of India in its final order.
SEBI’s decision on Bullmatics Advisory Pvt Ltd
SEBI also noted that Bullmatics Advisory Pvt Ltd and its entities have collected over Rs 1.7 crore. That was through such investment advisory services. The board has directed the entities to refund the money received from the investors. That will act as fees for the unregistered investment advisory services. They have been given a period of three months by the regulation of the securities market in India.
Also, they are prohibited from dealing with or accessing security markets directly or indirectly. As per SEBI, Bullmatics Advisory Pvt Ltd should not access the same. This restriction is for a period of six months in any manner. That applies until the expiry of these six months or from the date of completion of refunds to the investors.
The order that was passed in January came into force immediately. However, SEBI has also added that the directions related to the refund process will come into force only from February 28. The board took the decision keeping in mind the COVID-19 pandemic. The reason behind this is the consequential restrictions imposed in various parts of the country.
The regulator released seven separate orders to levy the fines on the company. In total, the levied fine is Rs 35 lakh that has gone to seven entities. That also includes some individuals who had indulged in non-genuine trades. Most of these were present in the BSE’s illiquid stock options.
A penalty of Rs 5 lakh was imposed on Bineet Agarwal, Minal Aggarwal, Santosh Kumar Saraf HUF, Nisha Balasiya, Navneet Kothari HUF, Kashni Gupta, and Rajeev Gupta HUF.
The entities executed reversal trades in the contracts of stock options. This happened between the months of April 2014 to September 2015. These were false activities that were non-genuine and misled the appearance of trading. That happened in terms of artificial volumes in the stock options. It also led to the violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.
SEBI also issued a separate order where it imposed a penalty of Rs 10 lakh on three C Green Developers. This fine was imposed for violating the provisions of LODR (Listing Obligations and Disclosure Requirements) rules.
The regulator further issued another order against Sharekhan Ltd and imposed a fine of Rs 5 lakh. The company was accused of indulging in fraudulent trading with another organization called Sampada Chemicals.