Sebi bans Capital True Financial’s proprietor from acting as investment adviser

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New Delhi, Nov 8: Market regulator Sebi has barred Narendra Singh Tanwar, proprietor of Capital True Financial Services, from acting as investment adviser in order to prevent him from further misleading investors on false pretense.
The market watchdog has also restrained Tanwar from diverting any funds raised from investors until further orders. Also, he has been directed to submit a list of clients and fee collected from them to Sebi within 21 days.
The move comes after the regulator received a complaint in August alleging that Tanwar had promised a lucrative return to the complainant by investing his money in the securities market over a short period of time (4 months) for a large fee.
While examining the complaint, the regulator found that Tanwar had obtained registration from Sebi to act as an IA (investment adviser) by producing an experience certificate which showed that he was working as a portfolio management advisor with the stock broker during January 2009 to June 2014.
However, when the veracity of the experience certificate was scrutinised by questioning the signatory of the certificate, it turned out to be prima facie not genuine/forged/fabricated, the regulator noted.
“It is prima facie held that the noticee (Tanwar), by submitting false documents has obtained registration from Sebi as an IA and has prima facie violated…IA Regulations,” the Securities and Exchange Board of India (Sebi) said in an order dated November 6.

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