Mumbai, Jun 29 (IANS): The Securities and Exchanges Board of India (SEBI) has barred an unregistered investment advisory firm Profitsaim and its proprietor Syed Ayaz from the stock markets for a period of two years for providing unauthorised investment recommendations.

The capital market regulator has also directed the firm and its owner to refund the Rs Rs 33.74 lakh received from the clients, as fees or consideration or in any other form, in respect of their unregistered investment advisory activities, within three months of the order.

"The noticees are debarred from accessing the securities market, directly or indirectly and are prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in any manner whatsoever, with immediate effect upto a period of 2 (two) years from the date of this order or till the expiry of 2 (two) years from the date of completion of refunds to investors," said the SEBI order.

SEBI said that the repayments to the investors shall be effected only through bank demand draft or pay order or electronic fund transfer or through any other appropriate banking channels, which ensures audit trails to identify the beneficiaries of repayments.

It has also prevented the firm from selling its assets, properties and holding of mutual funds, shares, securities held by them in demat and physical form except for the sole purpose of making the refunds as directed above.

"Further, the banks are directed to allow debit only for the purpose of making refunds, to the clients/investors who were availing the investment advisory services from the noticees, as directed in this order, from the bank account of the Noticees, wherein debit has been frozen by virtue of interim order dated November 12, 2020."

SEBI said that the present proceedings have emanated from an ex-parte ad-interim order-cum-show cause notice dated November 12, 2020 passed by the regulator against Profitsaim and its sole proprietor, as the unregistered investment advisory activities of the noticees were found to be in violation of SEBI norms.