Mohit Manghnani SEBI Case: Mohit Manghnani has been prohibited from participating in the securities markets for a substantial period of five years. In addition to this, he has been levied with a substantial fine amounting to Rs 30 lakh
SEBI News: The Securities and Exchange Board of India (SEBI), which serves as the capital markets regulator in the country, has taken strict action against an individual, Mohit Manghnani, who has been found in violation of regulatory norms. SEBI has imposed a series of penalties and restrictions on Mr. Manghnani, signaling its commitment to maintaining the integrity and fairness of India’s securities markets, as per a report carried by PTI.
SEBI Takes Actions Against Mohit Manghnani
As a consequence of his actions, Mohit Manghnani has been prohibited from participating in the securities markets for a substantial period of five years. In addition to this, he has been levied with a substantial fine amounting to Rs 30 lakh. These actions are in response to his blatant disregard for regulatory rules within the securities market.
SEBI also directed Manghnani to resolve all complaints received through the regulator’s SCORES portal within a period of three months. The order came after the markets watchdog had passed an ex parte order against Manghnani and the latter approached the Securities Appellate Tribunal (SAT), which remanded the matter back to SEBI and directed the regulator to pass a fresh order.
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Mohit Manghnani SEBI Case: Reasons Behind Action
In its order passed on Friday, the regulator found that the noticee (Manghnani) did not cooperate with SEBI during the inspection and deceived its clients by not disclosing the information as regards change in the address and the stopping of business. Further, the noticee made promises of assured and unrealistic returns to clients and has sold non-suitable services and charged exorbitant fees from its clients, thereby violating the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules and IA (Investment Adviser) norms.
SEBI also noted that 53 complaints were pending against the noticee since September 2018, and Manghnani has not taken any steps whatsoever to resolve the same. Therefore, the noticee has flouted the provisions of IA regulation. Accordingly, the regulator has debarred Mohit Manghnani from accessing or dealing in the securities markets for a period of five years from the date of this order or till the expiry of 5 years from the date of resolution of complaints, whichever is later.
As per SEBI, the noticee had collected Rs 7.30 crore received from the clients/ investors/ complainant on or after April 1, 2018, as fees or consideration or in any other form in respect to the investment advisory activities.
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In two separate orders passed on Friday, the regulator suspended the registration of two brokerage houses — Indian Portfolio Ltd and Sincere Commodities and Derivatives Markets — for their involvement in illegal paired contracts on the now-defunct National Spot Exchange Ltd (NSEL).
