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SEBI on Wednesday barred Gold Tree and its proprietor Sarvesh Kumar from the securities markets for providing advisory and portfolio manager services without the market regulator's authorisation.
In addition, the regulator restrained Gold Tree and its proprietor Sarvesh Kumar from accessing the securities markets for six months.
The direction came after SEBI received a complaint in November 2018, alleging that the complainant lost money by investing in the portfolio management service scheme offered by Kumar, proprietor of Gold Tree.
Based on the complaint, SEBI conducted an examination into the affairs of the noticee (Sarvesh Kumar) and found that the noticee is running an unregistered investment advisory and unregistered portfolio manager services (PMS) and issued a show cause notice to the noticee on August 18, 2021.
Final order
In its final order, the regulator found Kumar was engaged in providing investment advisory services and PMS without obtaining a certificate of registration from SEBI as an investment adviser and portfolio manager, which violates IA (Investment Adviser) rules and PMS norms.
The amount of money prima facie observed to have been collected by the noticee was ₹1.73 crore, SEBI said in the order.
In its order, the regulator directed the noticee to refund within three months the money received from investors as fees in respect of their unregistered investment advisory activities and unregistered portfolio manager activities.
They have also been restrained from accessing as well as dealing in the securities markets directly or indirectly in any manner for six months from the date of the completion of refunds to investors, whichever is later.
In addition, they shall not undertake investment advisory services or any activity in the securities markets without obtaining a certificate of registration from the SEBI either directly or indirectly during or after the expiry of the debarment period.
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