In two separate interim orders, the market regulator directed Capital Nivesh Research, Bright Money Solutions, their sole proprietor Naresh Nimawat, and three individuals — Ashwin Doriya, Suneel Kumar Patel and Duiji Patel — to cease and desist from acting as investment advisors until further orders.
In two similarly worded orders, Sebi directed the entities and individuals to “immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications…in relation to their investment advisory activity or any other unregistered activity in the securities market until further orders”.
They have also been asked to not divert any funds raised from investors.
“If they have any open positions in any exchange traded derivative contracts, as on the date of the order, they can close out/square off such open positions within 3 months from the date of order or at the expiry of such contracts, whichever is earlier,” according to the orders.
In one of the interim orders regarding Capital Nivesh Research and Bright Money Solutions, the regulator said Nimawat and Doriya had been acting together and showing themselves as investment advisors without obtaining registration from Sebi.
Further, it noted that Doriya had used his bank account for the purpose of collection of fees.
The total amount of money, prima facie, observed to have been collected by both the firms is Rs 95.30 lakh that indicates the magnitude of the prospective threat to the investors, the watchdog said in the order passed on Thursday.
In another interim order against Suneel Kumar and Duiji, Sebi found that both of them were carrying out unregistered investment advisory services in the name of Goodwill Research.
Through the website named Goodwill Research, they solicited and induced investors to deal in securities market on the basis of investment advice, stock tips, among others, prima facie, without having the requisite registration/certification, the regulator said in the order passed on Wednesday.