Sebi has directed Moneyworld Research to immediately stop providing investment advisory services with regard to the securities market and withdraw all the related advertisements.
Securities and Exchange Board of India said it prima facie found that Moneyworld Research and Advisory Pvt Ltd was offering trading tips to investors without obtaining requisite registration to act as an investment adviser.
Accordingly, through an interim order dated December 2, the market regulator has asked Moneyworld Research and its two directors to “cease and desist from acting as investment advisers and cease to solicit or undertake such activities or any other unregistered activity in the securities market, directly or indirectly, in any manner whatsoever”.
They are also required “to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites etc in relation to their investment advisory or any unregistered activity in the securities market”.
Sebi had closed the application of registration of Moneyworld Research in March, 2014, after it found several lapses on part of the entity.
However, it was noted that Moneyworld Research “solicited and induced” investors to deal in securities on the basis of their investment advices as well as guaranteeing returns even after the receipt of communication regarding the closure of their application for registration by Sebi on March 27, 2014.
The order observed that “subjecting the investment advisers to the statutory requirement of registration with Sebi is imperative for the protection of interests of investors and to safeguard the integrity of securities market”.