Besides, they have been prohibited from acting as portfolio managers till further orders.
Pursuant to this, Sebi conducted a preliminary examination and found that the entities were providing portfolio management services (PMS) without obtaining registration from the regulator.
By virtue of providing unregistered Portfolio Management Services, GJ advisory and Profit Ideas had collected an amount of Rs 8.89 crore as fees towards the management of funds and securities of clients, it added.
By indulging in such activities, they violated the provisions of PMS Regulations, Sebi said in an interim order on Monday.
Accordingly, the capital markets watchdog directed — GJ Advisory Service, its proprietor Gourav Jain; and Ideas Advisory, its proprietor Poonam Jain — to “cease and desist from acting as portfolio manager” until further orders.
They have been asked to immediately withdraw and remove all advertisements in relation to their investment advisory activity until further orders.
Further, the regulator prohibited them from diverting any funds raised from investors and restrained them from disposing of any assets, whether movable or immovable, including money lying in bank accounts, except with the prior permission of Sebi.
The regulator asked them “not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders”.