New Delhi: Capital market regulator, Sebi has barred HBJ Capital Services and its directors from acting as investment adviser and alternative investment fund for providing unauthorised investment tips to investors.
The regulator said HBJ Capital Services and its promoters /directors have been acting as providing investment advisory services to their clients/investors without obtaining registration from Sebi to act as such and, thereby, have violated norms.
In an order passed today, Sebi said HBJ Capital Services and its directors "cease and desist from acting as an Investment Adviser and Alternative Investment Fund and cease to solicit or undertake such activities or any other unregistered activities in the securities market directly or indirectly, any manner whatsoever".
HBJ Capital Services and its directors have solicited and induced investors to deal in securities on the basis of their investment advices and stock trade tips among others through mail, SMS, web-login etc.
It was observed that investors at large could be misled and the moneys invested by the investors are at risk on account of such unauthorised activities of unregistered entities.
HBJ Capital Services has been directed to immediately withdraw and remove all advertisements, publications, documents, websites, in relation to those schemes/activities or any unregistered activity in the securities market.
Sebi also directed "not to divert any funds raised from investors, kept in bank account(s) and/or in the custody of HBJ Capital or its directors and HBJ Capital LLP and its designated partners."
This order would come into force with immediate effect.
