Sebi penalises PMIA, its directors for violating market norms
PMIA is a Sebi-registered Investment Adviser (IA) and its directors are Abhishek Patel, Shekhar Mishra and Parul Sahu.
Sebi on Wednesday levied penalties totalling Rs 28 lakh on Pinnacle Market Investment Advisory (PMIA) and its directors for violating regulatory norms.
PMIA is a Sebi-registered Investment Adviser (IA) and its directors are Abhishek Patel, Shekhar Mishra and Parul Sahu.
The regulator slapped a fine of Rs 13 lakh on PMIA and Rs 5 lakh each on Patel, Mishra and Sahu.
In addition, Sebi directed PMIA and its directors to resolve the complaints pending against Pinnacle in SCORES within seven days and further settle pending refunds within thirty days.
Also, the regulator restrained them from the securities market and also restricted them to issue prospectus, offer document or solicit money for a period of three years.
Further, the regulator prevented PMIA and its directors from selling their assets, properties and mutual funds held by them in demat and physical form for other than the purpose of making the refunds.
The order came after Sebi received multiple complaints against PMIA.
Also Read: Budget 2023: Why agri stocks are in focus prior to Budget
The regulator examined the information available on the website of PMIA and documents/ information received from complainants.
Sebi found that PMIA and its directors was supposed to inform the regulator about the appointment of Parul Shah on its board of directors, which was a material information, and therefore it violated the IA regulations.
Also Read: Budget 2023: Experts eye big push for infrastructure sector from government
It also found PMIA and its directors have sold multiple products to their clients, which do not match the risk profile of the client and further charged exorbitant fees from their clients resulting in the violation of provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.
It also noted that PMIA and its directors did not redress the investors' grievances within the timeline prescribed by Sebi.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
09:51 AM IST