Regulator Sebi has barred Profitsaim and its proprietor Syed Ayaz from the capital markets for providing unauthorised trading tips to investors.

Besides, they have been prohibited from carrying out investment advisory services till further orders.

The direction comes after the regulator received a complaint in May from Nitesh Jain, proprietor of ProfitAim Research, a Sebi-registered investment advisor, against Profitsaim alleging that it is an unregistered entity which is defrauding people and misusing the name of his firm.

Pursuant to this, Sebi conducted a preliminary examination and found that Profitsaim was soliciting and inducing investors to deal in securities market on the basis of investment advice, stock tips, among others, prima facie, without having the requisite registration as mandated under the IA norms.

Prima facie, Profitsaim had collected Rs 33.74 lakh from investors through such services.

By indulging in such activities, they violated the provisions of investment advisers (IA) Regulations, the Securities and Exchange Board of India (Sebi) said in an interim order last week.

Accordingly, Sebi directed Profitsaim and its sole proprietor Ayaz to “cease and desist from acting as an investment advisor” 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 a