The regulator found that the entity and its proprietor Manish Lalwani were engaged in unauthorised investment advisory services and collected funds from investors without registration.
MUMBAI (India CSR): The Securities and Exchange Board of India (SEBI) has passed an order against Capital Yield Research and Advisory and its proprietor Manish Lalwani for providing unauthorised investment advisory services and collecting funds from investors without registration.
According to the order dated May 25, 2023, SEBI found that Lalwani collected funds by providing unregistered investment advice to investors through his proprietary firm Capital Yield Research and Advisory from December 2015 to September 2016. Thereafter, he mobilised capital through his proprietary firm Secure Investor Investment Advisory between August 2016 and July 2017.
SEBI noted that Lalwani had solicited and induced investors to deal in securities on the basis of his investment advice, stock tips, portfolio management services etc. without obtaining a certificate of registration from SEBI as required under the SEBI (Investment Advisers) Regulations, 2013.
SEBI also observed that Lalwani had failed to comply with the provisions of the SEBI Act, 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 by making false and misleading representations to the investors, misusing their funds, not providing any services or returns as promised, and not maintaining any records or accounts of his activities.
SEBI further noted that Lalwani had violated the directions issued by SEBI in an interim order dated September 29, 2017, wherein he was restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever, until further orders.
In view of these findings, SEBI has directed Lalwani and Capital Yield Research and Advisory to cease and desist from acting as investment advisers and refrain from undertaking any activity in the securities market, directly or indirectly, in any manner whatsoever. SEBI has also barred them from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever, for a period of three years from the date of the order.
SEBI has also directed them to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites etc. in relation to their investment advisory activity or any other activity in the securities market.
SEBI has further directed them to refund the money received from their clients or investors as fees or consideration or in any other form in respect of their unregistered investment advisory activities along with an interest within a period of three months from the date of receipt of this order.
SEBI has also advised the investors who have availed the services of Lalwani and Capital Yield Research and Advisory to file their claims with SEBI along with supporting documents within a period of three months from the date of receipt of this order.
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