Markets regulator Sebi today restrained Imtiyazhusain Saiyed Mohamed Saiyed from the securities market for three years for violating various norms.
"Imtiyazhusain Saiyed has acted in a manner which was detrimental to the interests of investors in the Indian securities market and as a result violated... provisions of the Sebi Act read with the Portfolio Managers Regulations; the SCRR; the PFUTP Regulations, 2003 and the Stock Brokers Regulations," the regulator said in an order.
The Securities and Exchange Board of India (Sebi) conducted an investigation into matter of Imtsons Investments and Imtiyazhusain Saiyed for the period from April 2007 to June 2011, after receiving references from several investigating agencies concerning various issues.
However, the regulator dropped the proceedings against Imtsons Investments.
According to Sebi, during the period from April 2007 to November 2009, the individual had entered into agreements with investors and collected funds from them and invested the amounts in the securities market on their behalf.
The regulator noted that the individual's activities were in the nature of portfolio management services and he had undertaken them without being registered as a portfolio manager with Sebi.
As per the regulator, the collection of funds along with the promise of assured returns on investments in the securities market as made by Imtiyazhusain Saiyed to the investors, "was incorrect and deceitful" and it clearly resulted in 'fraud' as defined under the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices)) Regulations, 2003.
The individual was collecting money from the investors with a commitment to pay assured returns, by misusing the trade name granted as a broker of ICICI Securities, Sebi said, adding that the conduct gives rise to pecuniary liability in his personal capacity to his investors, which is explicitly prohibited the Securities Contracts (Regulation) Rules (SCRR).
The conduct of the individual as a registered sub-broker was also improper and fraudulent, Sebi noted.
The regulator has also directed Imtiyazhusain Saiyed to refund the money collected from his the investors during the period April 2007 to November 2009 with an interest of 15 per cent per annum.
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