Capital markets regulator Sebi has banned DS Capital Venture and its directors from the securities market for three years for violating regulatory norms.

DS Capital Venture (DS Capital) is registered as an investment adviser to Sebi, and its directors are Sanjay Dwivedi, Piyush Kumar Sharma, Deepali Sharma and Abhishek Tiwari.

Sebi received investor complaints against DS Capital between May 2019 and January 2020. Complaints received on SCORES will be sent to DS Capital for remediation. However, despite the reminders sent to the company, the complaint still needs to be remedied.

Accordingly, the regulator approved the inspection of DS Capital’s compliance with IA (Investment Adviser) regulations.

In its final order, Sebi said DS Capital failed to rectify investor grievances but was also found to have violated the PFUTP (Prohibition of Fraudulent and Unfair Trading Practices) rules by using its advisory services to mislead clients about securities transactions.

Furthermore, it added that submitting incorrect information to the regulator and failing to update material information led to the inference that DS Capital needed to be more transparent in its dealings with market regulators.

The IA Code was drafted not only to protect the interests of investors but also to make the operation of investment advisors more transparent and accountable.

However, Sebi said in an order passed on Thursday that DS Capital failed to meet the standards and objectives of the IA Rules and thus violated market norms.

The regulator also states that acts performed in the name of a company are carried out by natural persons who, as directors, control the affairs and management of the company with their minds and wisdom.

Dwivedi, Tiwari, Piyush Kumar Sharma, and Deepali violated the norms through such actions.

Sebi has restricted companies and their directors from accessing and dealing in the securities market for five years from the date of this order.

The regulator also banned Dwivedi, Tiwari, Piyush Kumar Sharma and Deepali Sharma from holding any management positions or being associated in any capacity with any intermediary registered with Sebi for five years.

In addition, it directs DS Capital to resolve outstanding complaints filed against it on SCORES within 30 days of the date of this order.

If DS Capital does not comply with the instructions, it will be banned from the securities market for three years.