Profit Redefine and Its Proprietor Barred From Securities Market For Running Unauthorised Investment Advisory
Moneylife Digital Team 07 July 2022
Market regulator Securities and Exchange Board of India (SEBI) has barred Profit Redefine Financial Solution (PRFS) and its proprietor Sanjay Yadav from the market for acting as investment advisors and providing unauthorised trading tips and stock recommendations to investors. Besides, they have been restrained from accessing the securities market for six months. 
 
The order follows an interim order-cum-show-cause notice dated 7 February 2020 passed by SEBI against Profit Redefine Financial Solution, its sole proprietor Sanjay Yadav and other entities. In its interim order, SEBI said PRFS services in the securities market and investment advisory plans floated by the noticees were prima facie found to be as fraudulent practice and unregistered investment advisory activity.
 
The regulator also noted, noticees have already been restrained from accessing the securities market through the interim order. In its final order, the regulator found that PRFS and Yadav were engaged in providing investment advice to the public in lieu of consideration and were thus, acting as an ‘investment adviser’. However, the regulator noted that they were not holding any certificate of registration from SEBI to act as an Investment Advisor (IA). The amount of money prima facie observed to have been collected by PRFS and its proprietor Sanjay Yadav was Rs1.56 crore from June 2016 to May 2019. It added that such acts violated the provisions of IA norms and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.
 
Profit Redefine and Yadav are collectively referred to as noticees. In its order, SEBI has directed noticees to refund the money received from the investors as fees in respect of their unregistered advisory activities within three months.
 
They have been restrained from accessing and dealing in the securities market directly or indirectly in any manner for six months from the date of this order or till the expiry of six months from the date of refunds to investors, whichever is later. In addition, they have been restrained from selling their properties, securities and mutual funds holding except for the sole purpose of making the refunds.
 
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