Market regulator Sebi has banned Moneytree Research and its owner Narendra Madan Rathod from the securities market for three years for providing unauthorised investment services.

The order comes after Sebi received complaints against Moneytree and Rathod. The regulator reviewed the matter and issued a show-cause notice to Moneytree Research and Rathod in August 2021.

Moneytree Research and Rathod are collectively referred to as noticees. In its order, the regulator found that the notifier was never registered with Sebi in any intermediary capacity.

The regulator found that the noticees breached the IA (Investment Adviser) Rules by acting as an “investment adviser” without being registered with the Securities and Exchange Board of India (Sebi).

In an order passed on Friday, Sebi said that between June 2017 and November 2018, the noticees had received a total of Rs 41.07 lakh.

Sebi has directed the noticees to return the money received by investors for their unregistered investment advisory activities within three months.

In addition, the regulator also prohibits the noticees from entering the securities market and trading in the securities market for three years from the date of refunding the customer and depositing the balance in Sebi, whichever is later.

In addition, the order said that the noticees should only engage in investment advisory services or any securities market activities if they obtain a registration certificate directly or indirectly from the regulator during or after the expiry of the prohibition period.

In another order, Sebi fined five individuals a total of Rs 30 lakh for manipulating Exdon Trading Company’s share price.

The regulator fined five people between Rs 5 lakh and Rs 10 lakh. These persons are collectively referred to as noticees.

The order comes after the Securities Appeals Tribunal (SAT), in its June 2021 ruling, set aside the Sebi order passed in May 2019 involving nine entities, including the noticees, imposing a fine of Rs 30 lakh on noticees and directed the market regulator to decide on the matter to discuss the merits.

Earlier, Sebi had investigated whether certain entities violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Trading Practices) code in trading Exdon shares between May 2013 and March 2015.