Explained: How a Finfluencer Ended Up Paying 6.5 Cr to SEBI!

  • Stock Market Analysis
Aayush Khanna/Investing.com - Investing.com

The talk of the town is a well-known options trader and finfluencer PR Sundar facing SEBI’s wrath to the tune of a whopping INR 6.5 crores. As most of the trading fraternity is curious to understand what exactly happened, here I am breaking down the entire case for you in simple words, as usual :)

All of you might be knowing that it is illegal in India to run any kind of financial advisory service without the appropriate registration with SEBI. The market regulator has been cracking down on these illegal activities for a while now and last year it received two references that PR Sundar was also doing the same. As SEBI started investigating the matter, it found that he was running a website - prsundar.blogspot.com through which he was offering various packages for advisory services.

The fee received in lieu of these services was in the bank account of Mansun Consultancy Pvt. Ltd, of which PR Sundar was one of the directors. After receiving account opening forms and KYC documents from Mansun Consultancy‘s bank, SEBI noted that the type of business mentioned therein was “share marketing consultancy”. By now it was clear to SEBI that there was a clear violation of Section 12 (1) of the Securities and Exchange Board of India Act, 1992.

Now, how did SEBI arrive at the settlement amount? Before taking any further steps, SEBI sent a show-cause notice on 17 May 2022 to PR Sundar to grant him an opportunity of being heard. While the proceedings were underway in reply to the notice, PR Sundar’s representative filed three applications of settlement as per SEBI (Settlement Proceedings) Regulations, 2018. However, the Internal Commitee of SEBI asked for a revised settlement application which was finally approved.

So here’s what PR Sundar finally settled the case for:

  1. Settlement Amount:

INR 15,60,000 for each (Mansun Consultancy & 2 of its directors), totalling INR 46,80,000

  1. Disgorgement Amount

Total fee collected by Mansun Consultancy Pvt. Ltd. - INR 4,59,95,763 + Interest on fee collected @12% p.a (from 1 June 2020 - 2 February 2023) - INR 1,47,74,100 = INR 6,07,69,863

Total Settlement - INR 46,80,000 + INR 6,07,69,863 = INR 6,54,49,863 or INR 6.54 crores

In case you think you have also been cheated by the illicit investment advisory and duped of your hard-earned money, you can also lodge a complaint on SEBI’s SCORES platform.

Read More: ‘Inverse H&S Breakout’ Propels Stock 6% Up!

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  • Uma Pandit @Uma Pandit
    Excellent presentation! Thanks for the updates.
    Like 0
  • Manoj kumar @Manoj kumar
    Thank you Ayush for detailed information.
    Like 2
    • Aayush Khanna @Aayush Khanna
      You're welcome, Manoj.
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
      • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
      • Be respectful. Even negative opinions can be framed positively and diplomatically.
      •  Use standard writing style. Include punctuation and upper and lower cases.
      • NOTE: Spam and/or promotional messages and links within a comment will be removed
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  • Hanamanth Kabadi @Hanamanth Kabadi
    that's good these influencers... are just like weather reporters... first SEBI must block all these YouTube influencers... they are manipulating people's minds there are very few who gives honest entry and exit points in the quality stocks. Ultimately entry and exit levels in stock market is important mostly of the retail investors not be knowing and get stuck with their hard earned money
    Like 5
  • Rahul Padalkar @Rahul Padalkar
    thanks for sharing
    Like 1
    • Aayush Khanna @Aayush Khanna
      You're welcome, Rahul.
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
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      • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
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  • Sivagnanam Subramanian @Sivagnanam Subramanian
    👍
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