Indian market regulator Securities And Exchange Board Of India (SEBI) has issued an ad interim ex parte order against three illegal investment advisors –Rishabh Jain, Ubaidur Rahman and G. Kadar Hussain. The trio has been alleged for a fraud of over INR 10 Cr and SEBI has directed them to cease and desist from acting as an investment advisor.
The action comes after SEBI received an email complaint on December 18, 2015 from National Stock Exchange of India Ltd. (NSE), which forwarded the details of a website viz. trade4target alleging unregistered investment advisory service through the said website in which stock options and commodity tips were provided.
The SEBI order established that certain websites and individuals were allegedly offering unregistered investment advisory services, but in reality they were running the operations without obtaining the SEBI registration as an Investment Adviser under SEBI (Investment Advisers) Regulations 2013. On the contrary, they claimed through their websites that they are SEBI-registered Advisory firms.
On the examination over the past few years and multiple complaints against the websites owned and operated by Jain, Rahman and Hussain, SEBI has barred 12 websites namely:
The order dated March 20, 2019, against Rishabh Jain, Ubaidur Rahman and G. Kadar Hussain is also to be treated as a show cause notice.