Sebi bars Fortunescript Services, three directors from securities market
New Delhi: Capital markets regulator Sebi has barred Fortunescript Services Pvt Ltd and its three directors from the securities market for carrying out unauthorised investment advisory activities.
The company as well as the three directors — Mithilesh Narayan, Shiba Shankar Das and Dilip Kumar Rajak — have also been directed to cease and desist from acting as investment advisors till further orders.
In its interim order dated August 4, Sebi has also asked the entities to withdraw all advertisements in relation to their investment advisory services or any other unregistered activity in the securities market.
Following a complaint against Fortunescript, Sebi had carried out an examination of its activities and it was found that the company was not registered with the regulator as an investment advisor or in any other capacity.
“Without having a registered investment advisor certificate, Fortunescript Services Private Limited is holding itself out as an investment advisor and offers services through its website to investors with the objective of making money/ collecting fees through subscriptions.
“From the Memorandum of Association of the company it is noted that in order to provide advisory services and to do all the activities of the capital and finance market will be subject to the approval of Sebi and other authorities,” Sebi said in the order.
According to the regulator, prima facie, it appears that the company is knowingly concealing the fact that it is not registered with Sebi as an investment advisor and is also making representations in a reckless and careless manner, thereby luring and inducing investors to deal in securities by availing its services.
Bank accounts and payment gateways showed that Fortunescript Services collected an amount of around Rs 1.22 crore from investors, Sebi noted.
The company as well as the directors have been directed not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders.
“Fortunescript Services Private Limited is directed not to divert any funds raised from investors, kept in bank account(s) and/or in its custody until further orders,” it added.
In a separate order, dated August 4, the watchdog directed an individual — Chetan Yashwant Shukla — to cease and desist from acting as investment advisor till further orders for indulging in unauthorised investment activities.
The individual has also been barred from accessing the securities market till further orders.