SEBI had received several complaints against PR Sundar, the promoter of Chennai-based Manson Consulting, for giving investment and trading advice without adequate legal qualifications. Based on this, the case taken by SEBI has been settled by paying back the advisory fee and disgorgement amount of Rs. Disgorgement is a legal order to compel the return of ill-gotten gains.
Meanwhile, through the website www.prsundar.blogspot.com, services for stock investment and trading were offered through various packages. The list of investment recommendations given since January 2021 was submitted by the Manson firm during the SEBI probe. Further investigation revealed that several recommendations were made to clients for the purchase and sale of securities. Therefore, Manson assessed that the messages given by the call agency were of the type of investment advice.
After that time was given to PR Sundar to explain his side in the said matter. While these proceedings are in progress, the three parties who have indicated that they are ready for settlement have appeared before SEBI from their side. The case then proceeded to settlement. PR Sundar, Mangayarkarashi Sundar and Manson Consulting have agreed to pay a penalty of Rs 15.6 lakh each for a total of Rs 46.8 lakh and a disgorgement amount of Rs 6.07 crore with 12 per cent annual interest from June 1, 2020 on the amount earned as remuneration for unqualified services. In addition, the three parties have been barred from dealing in securities for a period of one year after the judgment. After the settlement of the case, SEBI informed that no further disciplinary action will be taken against PR Sundar in the said matter.
