Market watchdog SEBI has barred Trendline Traders Academy and its founder from securities market and prohibited them from mobilising funds, after they were found to be offering unregistered portfolio management services with “unrealistic claims of unlimited returns”.
SEBI has been clamping down various fraudulent investment schemes run by ‘unscrupulous’ entities, where they collect money from investors with promise of high returns.
SEBI’s probe followed an advertisement issued by Trendline in April, 2013 claiming to double the money invested by an investor through it in a year’s time.
After initial investigations, the regulator found that Trendline and its founder Sunil Laxman Kale were offering the portfolio management services to investors without seeking the requisite registration under the SEBI’s regulations.
“I find that Mr. Kale and Trendline made unrealistic claims of unlimited returns on the website and by nature of his acts and omissions, he tried to solicit, entice and induce investors to deal in securities,” SEBI Whole Time Member Rajeev Kumar Agarwal said in the market regulator’s order dated November 18.
Accordingly, SEBI said “Mr. Kale and Trendline are restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner.”
These entities shall cease and desist from undertaking the portfolio management activities or any unregistered activity in the securities market.
Besides, the regulator barred them from mobilising funds from the public or offering any portfolio management activities.
SEBI asked Mr. Kale and Trendline to immediately withdraw and remove all material information in relation to the portfolio management activities or any unregistered activity in the securities market.