3 hrs ago
Sebi Fines Shares Bazaar Five Entities Over Assured Returns
Sebi is India's market regulator.
It fined a company called Shares Bazaar and four people connected with it.
The company offered a plan promising investors returns of 18 to 48 percent every year.
The plan made it appear that the money would be invested in the stock market.
Sebi said it found no proof that this investment happened.
The regulator said some money was sent to another company or used to pay investors and other parties.
Shares Bazaar received the largest fine, while the individuals received smaller fines.
Sebi said the company and its leaders broke rules for financial market intermediaries.
Sebi fined Shares Bazaar and four individuals a combined Rs 20 lakh over an assured-return investment scheme.
Shares Bazaar was fined Rs 10 lakh, while its former and current executives and two directors also received penalties.
The scheme, called Making Millions Financially Free, promised annual returns of 18-48 per cent.
Sebi said there was no evidence that money raised through the scheme was invested in the securities market.
The regulator examined Shares Bazaar from March 2021 to December 2022 and found transactions totaling more than Rs 72 crore each in credits and debits.
- Who
- The Securities and Exchange Board of India fined Shares Bazaar, directors Bhupal Nanavath and Prasanna Lakshmi Atlur, former CEO Tirumala Lakshmi Venkata Ramesh, and current CEO Naresh Mitta.
- What
- They were fined a combined Rs 20 lakh for alleged violations of intermediary regulations linked to an assured-return investment scheme.
- Where
- The articles do not specify a physical location; the matter concerned Shares Bazaar's financial-market activities and bank accounts.
- When
- Sebi examined the company from March 2021 to December 2022 and issued its order on Tuesday.
- Why
- Sebi said the company promised annual returns of 18-48 per cent without evidence that the money collected was invested in the securities market.
Key facts
- Total penalty
- Rs 20 lakh
- Company penalty
- Shares Bazaar was fined Rs 10 lakh
- Individual penalties
- Bhupal Nanavath, Tirumala Lakshmi Venkata Ramesh, and Prasanna Lakshmi Atlur were each fined Rs 3 lakh; Naresh Mitta was fined Rs 1 lakh
- Scheme name
- Making Millions Financially Free
- Promised returns
- 18-48 per cent annually
- Examination period
- March 2021 to December 2022
- Bank-account activity
- 3,451 credit entries totaling Rs 72.66 crore and 6,686 debit entries totaling Rs 72.41 crore
Sources
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