Sebi bars Unique Consulting, directors from capital markets

New Delhi: Markets regulator Sebi has barred stock broker Unique Consulting & Trading and its directors from the capital market for a period of 10 years for allegedly collecting money from investors through various fraudulent schemes and promising them high returns.

The regulator has also cancelled the registration of the stock broker for unauthorised collection of funds.

According to Sebi, Unique Consulting had "misused" its status as a stock broker and solicited and collected funds and deposits from investors through misrepresentation and allurement of periodical returns.

"Unique Consulting acted in fraudulent and deceitful manner in violation of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations," it said in an order dated August 2.

The watchdog observed that funds amounting to more than Rs 53 lakh were collected by the stock broker from 21 entities under different schemes.

The stock broker had also issued deposit certificates acknowledging the amount collected from its clients or investors.

The Securities and Exchange Board of India (Sebi) noted that the stock broker had floated various schemes such as short term, PMS/Monthly and PMS/3 months, among others.

The use of the terms like short term, PMS/Monthly and PMS/3 months, among others, in the deposit certificates issued by Unique Consulting, and the advertisements and pamphlets issued by the stock broker offered services including wealth management, as the schemes offered are in the nature of portfolio management services, Sebi said.

However, according to the regulator, Unique Consulting "misled" the investors to believe that it was authorised to do the activities as a portfolio manager by misusing the Sebi registration as a stock broker.

Unique Consulting & Trading and its directors -- P Shanmuga Ganesan, K Mathan Kumar, U Indira and Janet Jenetha -- are prohibited from mobilising or pooling any fresh funds from its clients, other general investors or members of public, Sebi said.

Further, the regulator directed the stock broker and its directors to refund the money collected from clients and other investors in the various schemes along with income, profits or returns promised to them under such schemes.

Unique Consulting & Trading and its directors are directed not to access the securities market directly or indirectly, and are further restrained and prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in for a period of 10 years, Sebi said.

In a separate order passed on August 2, the regulator noted that by raising funds beyond authority and adopting fraudulent means, the stock broker had not adhered to the standards of the integrity expected from an intermediary in the securities market.