Regulator slaps Rs 20 lakh fine on SIMR for flouting regulatory norms
Sebi has levied a fine of Rs 20 lakh on Star India Market Research for allegedly flouting regulatory norms. Star India Market Research (SIMR) is a Sebi-registered investment adviser.
The Securities and Exchange Board of India (Sebi) conducted an examination of SIMR before issuing a show cause notice on July 11, 2023, for alleged violations.
In its 52-page order on Wednesday, Sebi found that SIMR charged arbitrary fees from clients, sold multiple products in a short span to the same client and also sold products for overlapping periods.
This was done to defraud clients and earn maximum fees, the order said, adding that the noticee did not act honestly, fairly, and diligently in the best interests of its clients, thereby violating the code of conduct of Investment Advisers (IA) regulations.
Further, Sebi observed that SIMR induced its clients to trade in the market, contravening the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) rules.
«I note that there were 24 unique complaints pending against the noticee (SIMR).
