SEBI cracks down on mobile-based stock market tipsters

The Securities & Exchange Board of India (SEBI) today took action against entities involved in circulating pretended market tips and stock advisories through mobile messages, a practice that has become ubiquitous in India.

The regulator barred Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala from accessing capital markets. Preliminary investigation revealed that these two individuals were providing investment advice through their proprietary concerns, Right Trade, Sai Traders, Bull Trader and Laxmi Traders, without being registered with SEBI.

''The entities had also made misrepresentations by making unrealistic claims, false statements such as having office in various countries, FII-based calls, jackpot calls, etc, and they also made representation in reckless and careless manner,'' SEBI said in a statement.

The regulator has directed all the entities involved to desist from acting as investment advisors and portfolio managers. Also, they have been asked to withdraw all advertisements and literatures from their websites and other publications.