Sebi on Wednesday levied penalties totalling Rs 28 lakh on Pinnacle Market Investment Advisory (PMIA) and its directors for violating regulatory norms.

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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.

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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.

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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.