Sebi fines Equitypandit Financial Rs 40 lakh for unauthorised investment acts

Markets regulator Sebi today imposed a fine of Rs 4000000 on Equitypandit Financial Services for carrying out unauthorised investment advisory services. The Securities and Exchange Board of India (Sebi) conducted an investigation in respect of Equitypandit Financial for the possible violation of regulations pertaining to Investment Advisors (IA). The probe found that Equitypandit Financial was carrying out unauthorised investment advisory services from June 2013 to October 2016. Besides, the company made gross receipts of Rs 2.360000000 and profits to the tune of Rs 8.5300000 out of such services during the period. However, the entity had submitted its application for registration as an investment advisor with Sebi in January 2016. The IA Regulations came into force from February 2013. Subsequently, the regulator in May 2013 had advised that no person will act as an investment advisor without obtaining a registration from Sebi. In addition, the markets watchdog advised all persons who were acting as investment advisor before the commencement of IA Regulations, to make their application for grant of registration before October 21, 2013 to continue to do so. According to Sebi, Equitypandit Financial started commercial business in research analysis and advisory services from June 14, 2013 which was after the commencement of IA Regulations. It started doing this without taking registration from Sebi. The regulator noted that Equitypandit Financial was carrying unauthorised investment advisory services and the timeline by Sebi for making application before October 21, 2013 was not applicable for it. Accordingly, Sebi has levied the fine of Rs 4000000 on Equitypandit Financial.