India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has imposed a fine of Rs 60 lakh on an individual for breaching market norms. The fine must be paid by Manish Goel (also known as Manish Kr. Goyal), a Sebi-registered research analyst, within 45 days.
In a comprehensive 46-page order issued on Friday, Sebi discovered that Manish had collected Rs 4.16 crore from 583 clients by charging them for research analyst services. However, he failed to comply with the basic requirements of research analyst (RA) norms and also made misleading promises of assured returns to his clients.
The regulator also noted that Manish assured members of the WhatsApp/Telegram groups that they would receive one free stock recommendation if they suffered losses from a particular stock recommendation. However, Sebi’s adjudicating officer Soma Majumder stated in the order that this promise of assured returns without any supporting research constituted the dissemination of misleading information, a violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
Furthermore, Sebi alleged that Manish, as an individual RA, served as the principal officer of a Sebi-registered investment adviser while conducting business as a research analyst. The regulator deemed that the investment advisory business of MSRAPL and Manish’s research analyst business should have been managed separately, with separate accounts for revenue.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
