Market regulator Sebi has barred Motivate Financial Services (MFS) and its three directors from acting as investment advisors after finding them guilty of providing unauthorised trading tips to investors. Sebi found that the entities were acting as investment advisors without securing registration from the regulator.
By acting as advisors, they have violated the regulator’s investment advisors norms.
“MFS and its directors have solicited and induced investors to deal in securities on the basis of their investment advice, stock trade tips and ideas on its website,” Sebi Whole-time Member S Raman said in an order.
“In view of this, it is apprehended that investors at large could be misled on account of such unauthorised activities of such unregistered entities,” he added.
The entities have been ordered “to cease and desist from acting as investment advisor and cease to solicit or undertake such activities or any other registered activities in the securities market, directly or indirectly in any manner whatsoever”.
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Furthermore, they have been directed not to divert any funds raised from investors that are kept in bank accounts or in their custody.
Besides, the watchdog has asked the firm and its directors to immediately withdraw and remove all advertisements, representations and the like in relation to their investment advisory or any unregistered activity in the securities market.