In a big move, market watchdog <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords">SEBI</keyword> has banned <keyword id="19902194" type="General" weightage="100" keywordseo="Anil-Ambani" source="keywords">Anil Ambani</keyword> from participating in the securities markets for 5 years, for diverting funds from <keyword id="20367971" type="General" weightage="20" keywordseo="Reliance-Home-Finance" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Home Finance" meta.hostid="261" meta.entityid="Reliance Home Finance">Reliance Home Finance</keyword> (RHF). This means that the debt-ridden Ambani scion will not be able to serve as key managerial personnel, or director in any listed company for the next 5 years. Additionally, he will also have to pay Rs 25 crore as a penalty. Along with Ambani, 24 others, which include former employees of RHF, have also been banned from trading in the securities market for a five year period. RHF itself has been barred from the securities market for 6 months, and has also been penalized Rs 6 lakh. <h2>Not the first time</h2>In its order, SEBI found Ambani guilty of fraud and channeling away RHF funds under the guise of loans by lending them to entities connected to him. This was despite the company's board of directors repeatedly advising to stop such practices. Ambani continued to orchestrate the fraud, thanks to his key position as the chairman of ADA Group, and also because of his shareholding in RHFL's holding company. In July this year, SEBI had barred the infamous fugitive Vijay Mallya from trading in Indian markets for three years, when it was found that Mallya illegally routed funds via foreign banks and companies to spruce up the share value of his own companies and profiting from the same, aka stock rigging. While all his assets in India are frozen, he also cannot serve as the director of any Indian listed company for this duration. But this is not the first time SEBI has debarred people from the markets. Last year, SEBI had barred Mohammad Nasiruddin Ansari, popularly known as <keyword id="22893256" type="General" weightage="20" keywordseo="Baap-of-Charts" source="keywords" meta.keywordsubtype="org" meta.entityname="Baap of Charts" meta.hostid="261" meta.entityid="Baap of Charts">Baap of Charts</keyword>, after he was f0und doling out misleading stock-related advise, while pretending to run educative courses. SEBI also asked Ansari to refund Rs 17.2 crore he had collected under the guise of fees. Another popular fin-fluencer, PR Sundar, was barred from options trading for an entire year, when it was found that he was running full fledged investment advisory services i.e. recommending buying and selling stocks, without obtaining the necessary licenses Bollywood actor <keyword id="20003289" type="General" weightage="20" keywordseo="arshad-warsi" source="keywords">Arshad Warsi</keyword>, along with his wife Maria Goretti, were also banned by SEBI last year after he was found uploading videos that lured investors to buy shares of two specific companies, namely Sadhna Broadcast and Sharpline Broadcast, and thus, profiting about Rs 29.43 lakh and Rs 37.56 lakh, respectively. They were not allowed to trade until they deposited all profits made in this manner in an escrow account. However, the duo, along with Warsi's brother Iqbal Warsi later received relief from SAT (Securities Appellate Tribunal), which set aside SEBI's order.

Anil Ambani, Arshad Warsi- Famous names who SEBI has barred from the markets

New Delhi, Clamping down on unauthorised investment advisory services offered in the name of '<keyword id="19268011" type="General" weightage="20" keywordseo="baap-of-chart" source="Orion">Baap of Chart</keyword>', regulator Sebi on Wednesday barred three entities from the securities market and ordered impounding illegal gains worth over Rs 17 crore. <keyword id="19264697" type="General" weightage="50" keywordseo="mohammad-nasiruddin-ansari" source="Orion">Mohammad Nasiruddin Ansari</keyword>, who described himself as an investment wizard, provided recommendations on stocks in the name of 'Baap of Chart' through the social media platform X and messaging app Telegram. The recommendations were given in the garb of providing educational training related to the securities market, according to Sebi. Besides Ansari, Padamati and <keyword id="19271004" type="General" weightage="80" keywordseo="golden-syndicate" source="Orion">Golden Syndicate</keyword> Ventures have been barred from the securities markets until further orders. Sebi directed them to cease and desist from acting as or holding themselves out to be investment advisors, whether using 'Baap of Chart' or otherwise. In its 45-page interim order cum show cause notice, Sebi found that Rs 17.21 crore has been accumulated during a period of just over two years from carrying out investment advisory activities, which are both unregistered and fraudulent. In view of receipt of fees for 'educational courses' directly in their bank accounts prima facie, the regulator concluded that Nasir, Padamati and Golden Syndicate Ventures are jointly and severally liable for alleged unlawful gains as an interim measure. "I cannot ignore the risk that the said Noticees (Nasir, Padamati and Golden Syndicate) may divert the alleged unlawful gains before directions for disgorgement/refund, etc, if any, are passed. "Further, I note that in his videos/ social media posts on 'courses' of Baap of Chart, Nasir repeatedly emphasises on providing access to live trading during his courses," Sebi's whole-time member <keyword id="183908" type="General" weightage="50" keywordseo="ananth-narayan" source="Orion">Ananth Narayan</keyword> G said in the order. Therefore, non-interference at this stage would result in irreparable injury to interests of the securities market and the investors, as per the order. "I am convinced that the balance of convenience lies in passing interim directions against them for preventing the continuation of any further fraudulent or unregistered activities in the interest of investors, and for impounding and retaining such quantified alleged illegal gains," Ananth Narayan G added. By indulging in such activities, the entities flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and Investment Adviser (IA) rules. Further, the regulator directed Nasir, Padamati, <keyword id="19271005" type="General" weightage="50" keywordseo="tabraiz-abdullah" source="Orion">Tabraiz Abdullah</keyword>, Asif Iqbal Wani, Golden Syndicate Ventures, Mansha Abdullah and Jadav Vamshi to jointly and severally disgorge the Rs 17.21 crore collected from clients/ investors through unregistered investment advisory activities. The markets watchdog also directed them to refrain from accessing as well as associating themselves with the securities markets for an appropriate period. The order came after Sebi analysed certain tweets on social media platforms X and Telegram, where Nasir was prima facie observed to be providing recommendations (buy/sell) through social media in the name of 'Baap of Chart' in the garb of providing educational training related to the securities market. Thereafter, the regulator initiated the examination against Nasir in order to ascertain whether he was engaged in offering investment advisory services without having Sebi's registration through social media/other means and thereby, flouting the regulatory norms. The examination period in the matter is from January 2021 to July 2023.

Baap of Chart: Sebi bars three entities and impounds illegal gains

<ul><li><keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">Sebi</keyword> has said in a draft circular that the disclosures made in the DRHP and RHP of public issues shall be made available in AV format as well </li><li>Key information in such disclosures includes details about the issuer company, its business operations, financial performance, and other information relevant to the investor </li><li>The effort could be to ensure that <keyword id="6359051" type="General" weightage="20" keywordseo="investors" source="Orion">investors</keyword> are not dependent on investment advice provided on social media by finfluencers </li></ul>In 2023, the Indian IPO market was on a roll with over <a href="https://www.businessinsider.in/stock-market/markets/news/ipo-market-raged-in-2023-with-companies-raising-almost-rs-38000-crore/articleshow/106286435.cms">200 companies </a>across industries participating in initial public offerings (IPOs). And the bumper listing of a (very) few of them means many investors want to have a slice of the IPO pie. The DHRP (<keyword id="13656337" type="General" weightage="20" keywordseo="draft-herring-prospectus" source="Orion">Draft Herring Prospectus</keyword>) is the initial document outlining the IPO. Knowing the details of DHRP is crucial for investors to assess the company's risks and potential rewards before investing in the IPO. In such disclosures, key information typically includes details about the issuer company, its business operations, financial performance, and other material information relevant to investors. Disclosures in DHRP and RHP to to be made in AV format Sebi has said in a draft circular that ‘the disclosures made in the DRHP and Red Herring Prospectus (RHP) of public issues shall be made available in Audio Visual (AV) format for ease in understanding of the salient features of public issues.’ Moreover, the new regulation mandates that such AV should be published in the public domain by the lead manager to the public issue in bilingual versions i.e., English and Hindi. The Hindi version shall contain the text in the Devanagari script. “The purpose behind SEBI's initiative to encourage RHPs and DHRPs to make disclosures available in audio-visual format is to enhance transparency and accessibility for investors. By providing information in a visual format, issuers can effectively communicate key details about their public offerings, thereby enabling greater investor understanding and engagement,” says Mahavir Lunawat, Chairman of the Association of Investment Bankers of India (AIBI). This aligns with SEBI's overarching objective of promoting investor confidence and protection within the capital markets. This move aims to provide investors with standardised, reliable video disclosures, reducing reliance on unauthorised sources. By presenting this information in a standardised audio-visual format, issuers can ensure consistency, transparency and clarity in their communication, facilitating informed decision-making by investors. Investors should stay away from unsolicited advice One of the main reasons behind Sebi’s decision is to protect the interests of investors and limit the possibility of them falling prey to unsolicited advice on the internet. Sebi has asked companies to start the audio-visual presentation with the following disclaimer, “Investors are advised not to rely on any other document, content or information provided on the offer on the internet/online websites/social media platforms/micro-blogging platforms and by the finfluencers since the same is not approved/commissioned/paid by the company or its promoter(s)/directors/KMPs in any manner.” Sebi has been warning investors not to follow investment advice from individuals who may be suggesting investment options, commonly known as finfluencers. In recent months, there have been instances of unregistered finfluencers being banned as well. In October 2023, The market regulator banned finfluencer Mohammad Nasiruddin Ansari, also known as 'Baap of Chart’, along with two others since they were providing or providing investment advice without proper registration. In May 2023, Sebi fined a YouTuber and options trader ₹6.5 crore for allegedly violating investment advisor norms. “SEBI's guidance is aimed at safeguarding investor interests and promoting reliance on verified and official disclosures. By encouraging investors to prioritise information from authenticated sources, SEBI aims to promote trust and confidence in the integrity of the capital markets, ultimately empowering investors to make well-informed decisions based on reliable information,” says Lunawat. Investors should thus make well-informed investment decisions, especially when it comes to investing in IPOs, and not be carried away by any investment advice on social media. It is always better to err on the side of caution when it comes to your hard-earned money.

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Anil Ambani, Arshad Warsi- Famous names who SEBI has barred from the markets

Ira Alok Puranik

Baap of Chart: Sebi bars three entities and impounds illegal gains

PTI

Sebi proposes audiovisual details for IPO disclosures — why is it important

Anagh Pal