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 been approved.
So here’s what PR Sundar finally settled the case for:
INR 15,60,000 for each (Mansun Consultancy & 2 of its directors), totalling INR 46,80,000
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.
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