Markets regulator Sebi has levied a fine of Rs 25 lakh on HBJ Capital Services Pvt Ltd and its four directors for not complying with its directions that barred the entities from acting as investment adviser and alternative investment fund.
The four directors are-- Kumar Harendra, Amrita Singh, Abhishek Kumar Singh and Jitendra Kumar. The entities are jointly and severally liable to pay the penalty, Sebi said. Through an interim order passed in June 2015, Sebi among other directions had directed the firm and its directors to desist from acting as investment adviser and alternative investment fund. However, the Securities and Exchange Board of India found that promoters of HBJ have violated Sebi directions and are rendering investment advisory services in the name of OSAR Capital. Sebi had also asked the firm to withdraw all advertisements, representations and websites related to investment advisory services but they failed to do so. Besides, HBJ did not remove its publication, documents and websites in relation to the activities as an investment adviser activity. Additionally, funds kept in the bank accounts were also withdrawn by HBJ, in violation of Sebi's interim order. Through separate orders, Sebi levied a fine of Rs 25,000 each on four individuals for violating provisions of the Securities Contracts (Regulation) Act. The entities had transferred and received shares of L-T Finance Holdings Ltd to and from a client in off-market transactions for which they were required to receive and make payment considerations.
However, they failed to do so. The individuals are -- Jayeshbhai Virchand Shah, Himani Jayeshbhai Shah, Vatsal Jayeshbhai Shah and Bharatkumar Ramanlal Patel.