Market regulator SEBI has tightened its continuous monitoring to protect the interests of investors. Under this, continuous action has been taken regarding unregulated investment advisory. SEBI has again taken action in a recent case, in which a teacher was found guilty of providing investment advisory services under the guise of coaching.
Rs 82 lakh will have to be returned.
The market regulator Action has been taken against the school teacher and one of his colleagues. SEBI has asked him to return the fees of more than Rs 82 lakh taken for providing illegal and unregistered investment advisory. Besides, a penalty of Rs 2 lakh each has also been imposed on both of them. The market regulator has also banned them from the securities market for the next two years.
Action taken against these two
SEBI issued an order in this regard on December 5. . According to the order, the name of the teacher against whom action has been taken is Chandrapratap Singh Naruka. Naruka is a teacher in a school affiliated with CBSE. Apart from this, he also ran coaching and under the guise of this, he used to collect huge fees by giving investment related advice to people. Amarjeet Singh Trehan was his associate in this work. Both of them were providing investment related services in the name of W Gain Research and Development.com.
This is how the complaint reached
SEBI received a complaint in this matter in January 2021. Complainant Arvind Joshi said that Naruka and his associate Trehan gave him investment advice, in which he had to suffer huge losses. W Gain had made the investment by charging a fee of Rs 90 thousand, in which Joshi suffered a loss of Rs 4 lakh. An attempt was made to recover this loss through IPO allotment, for which again Rs 44,415 was taken. When Joshi did not get shares in the IPO, he demanded a refund. Trehan refused to return the money, after which the matter reached SEBI.
Rs 82.32 lakh recovered in 3 years
SEBI investigation found that Naruka and Trehan had recovered Rs. 82.32 lakh in 3 years. During more than a period of time, Rs 82,52,620 was collected as fees through illegal advisory. SEBI has asked both of them to now refund this money. Besides, a fine of Rs 2 lakh each has also been imposed on them. During the investigation, both of them had also tried to trick SEBI in the name of coaching that they had taken money for investment in coaching.
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