The securities and Exchange Board of India (SEBI) penalized and barred renowned influencer PR Sundar for allegedly violating investment advisers’ norms. Sunday, his company Mansun Consulting and co-promoter of the company Mangayarkarasii Sundar settled with the market regulator complaints about granting investment advisory services without the requisite registration from the Sebi.
The three have agreed to pay a settlement amount, forego trading in securities for a year following the passing of the Settlement Order, and disgorge more than Rs 6 crore, which includes interest and profit from advisory services. The three have also agreed to pay a settlement amount.
According to the Settlement Order, which was issued on May 25, the settlement amount was Rs 15,60,000, which each party was required to pay in order to reach a settlement amount of Rs 46,80,000. The disgorgement amount was Rs 6,07,69,863, which included interest at a rate of 12% per year from June 1, 2020, until the date the revised settlement terms (RST), which were reached in February 2023, were submitted.
Sebi’s order states that the market regulator had received two references, among other things, alleging that PR Sundar was offering advisory services without first obtaining the necessary registration from Sebi. The order stated, “Upon examination, it was observed that Applicant no. 2 (PR Sundar) was running the website www.prsundar.blogspot.com through which he was offering various packages for providing advisory services. The fees collected in lieu of the services were received via a payment gateway linked to the bank account of Applicant no. 1, Mansun Consultancy Pvt. Ltd. (hereinafter referred to as ‘Mansun/ company’) held with ICICI Bank Ltd.”
Mansun, which was incorporated on June 30, 2017, is promoted by PR Sundar and Mangayarkarasi Sundar, who each hold 50% of the company’s shares. Following the tip, the market regulator sent a showcase notice to all three parties on May 17, 2022, and a follow-up showcase notice with additional observations on November 8, 2022. Included among them were posts on the blog from 2013 and later that promoted advisory services via Telegram channels and a payment method for these services. The money was being deposited into Mansun’s bank account.
