The regulator, in January last year, had passed an interim order against the company and individuals directing them to cease and desist from acting as an investment advisor and barring them from the capital market.
In a fresh order passed on Monday, Sebi restrained them from accessing the securities market for a period of three years.
However, while calculating the period of debarment, the period of restraint already undergone on account of interim order would be adjusted, Sebi said.
The market watchdog had carried out an inspection of The Equicom Financial Research for the period of April 1, 2015 to March 20, 2017.
During inspection, it was found that Equicom assured huge returns to the clients on the products/packages sold by it, thereby inducing them to buy its investment offerings.
The company had created a subterfuge whereby the gullible investors were induced to pay it more and more money under various pretexts, apart from paying the fees for the investment products/packages sold to them by the employees of Equicom, Sebi noted.
While doing so, the interest of the investors has been patently ignored. Not only Equicom has failed to act in a manner it ought to have acted qua its clients, but it also has failed to even put up any defence to explain its conduct with respect to the violations committed by it as alleged against it in the interim order, it added.
Also, the company was raising invoices even for those services which were scheduled to be started as far as after 19 months. Employees of Equicom also indulged in the illegal act of demanding a share in the profit earned by its clients even after taking full consideration prior to selling the said investment product/package which brought some profit to the client.
Such a conduct on the part of Equicom grossly lacks honesty, fairness and transparency, and it has blatantly failed to exercise due skill, care and diligence while dealing with its clients, the order noted.
The individuals — Amit Kukda and Akhilesh Raghuvanshi — were the directors of Equicom Financial during the relevant time.
The company and individuals were found to have violated the provisions of the Prohibition of Fraudulent and Unfair Trade Practices Regulations and Investment Advisers norms.
The company has also been directed to resolve the complaints pending against it on the SCORES platform and otherwise, within a period of 30 days from the date of this order.
In case of failure of Equicom to comply with the directions passed in this order, it would be restrained from accessing the securities market for an additional period of three years, Sebi said.
