Regulations
SEBI cracks whip on MCX Biz Solution for selling stock tips, forgery

SEBI passed an order against MCX Biz Solutions and its proprietor Syed Sadaq for selling trading tips, misrepresenting facts and showing fake sub-broker registration certificate on its website

Market regulator Securities and Exchange Board of India (SEBI) has barred MCX Biz Solutions (MBS) and its promoter Syed Sadaq from selling trading tips and accessing stock markets in any manner. MBS was soliciting and collecting money from public and was promising high returns.
 

SEBI found MBS displaying a forged sub-broker registration certificate on its  website and making other representations on regarding stock tips for trading, stock market, guidance on the entire investment process for both commodity and equity and best online stock trading calls.
 

SEBI also directed MBS and Sadaq to keep all the money collected from investors in nationalised bank’s escrow account and file a report with SEBI in this regard within seven days from the date of the order.
 

SEBI investigation revealed that, the address of Mumbai given by the entity on its website does not exists and it was originally situated at Hyderabad. On perusal of the account statements, it was observed that as of 27 August 2013 about 17 investors had deposited total funds of Rs3.56 lakh in the Axis Bank account and 10 investors had deposited fund of Rs1.43 lakh in the SBI account of MBS.
 

SEBI said that, it has not issued any certificate bearing number '0095979' with registration number 'INS838639255’, as displayed on the website and no official by the name of ‘Meera Kulkarni’ whose signature is mentioned on the said certificate was in employment of SEBI.  The market regulator said it has never granted any certificate of registration to any entity by the name of ‘Bonanza Promotional Ltd’ to act as a stock broker as represented in the said certificate. However, MBS or its proprietor Syed Sadaq has not replied to SEBI’s order till date.
 

SEBI passed an order dated 18th November to MBS and its proprietor Syed Sadaq.

  1. SEBI restrained from accessing the securities market and further prohibited buying, selling and directly or indirectly dealing in securities and banned MBS being associated with the securities market in any manner till further directions.
  2. SEBI directs to cease and desist from undertaking any activity in the securities market, directly or indirectly, in any manner till further directions.
  3. SEBI directs to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites etc. in relation to any activity in the securities market.
  4. SEBI prohibited from mobilizing funds from the public, in whatever form, till further directions.
  5. SEBI directed to keep the entire money collected by them from the investors forthwith in an escrow account opened with any nationalised bank and file a report with SEBI in this regard within seven days from the date of the Order.

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