SEBI bans Profitsaim for involvement in defrauding and providing unauthorized investment services

Today, Securities And Exchange Board Of India (SEBI) barred Profitsaim and its proprietor Syed Ayaz from the capital markets for providing unauthorised trading tips to investors and are prohibited from carrying out investment advisory services till further orders.

According to SEBI, it received a complaint on May 20, 2020, from Mr Nitesh Jain proprietor of ProfitAim Research, a SEBI registered Investment Advisor against an entity named ‘Profitsaim’, alleging that Profitsaim an unregistered company is using its name and defrauding people.

In the preliminary examination carried out by SEBI it was revealed that Profitsaim was using the payment gateway ‘Razorpay’ to collect payments from its customers and the account linked to Profitsaim was maintained with ‘DBS’ bank.

Profitsaim had collected Rs 33.74 lakh from investors through such services. And have the provisions of investment advisers (IA) Regulations.

SEBI has directed Profitsaim and its sole proprietor Ayaz to ‘cease and desist from acting as an investment advisor’ until further orders.

They are also told to immediately withdraw and remove all advertisements in relation to their investment advisory activity and they cannot divert any fundraised from investors and restrained them from disposing of any assets, whether movable or immovable, including money lying in bank accounts, except with the prior permission of SEBI and they are also asked not to access the securities market and buy, sell or otherwise deal in securities in any matter whatsoever, directly or indirectly.

Profitsaim and Ayaz may file objections or requests for personal hearing, if any, receivable by SEBI within 21 days from the date of the order and contest the findings also if the objections or request for personal hearing are not received by SEBI within the prescribed period, then it will be construed that the accused have no objections and have admitted the finding or allegations that have been made against them. Final directions will take effect against Profitsaim and Ayaz, SEBI reported.

The final directions include Profitsaim and Ayaz refunding the money received from clients in respect of the unregistered investment advisory activities and submitting a certificate from a chartered accountant, within a period of three months from the date of expiry of the prescribed period.

They also will be barred from the capital markets ’till the expiry of 5 years from the date of refund of the money’ under the final direction.

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