"Silence" is the best response, says options trader PR Sundar after SEBI settlement

After settling his case with SEBI, options trader PR Sundar has reacted saying that it was best to keep silence for some time. In a tweet posted today, Sundar said that "People who believe you, need no explanation. People who do not believe you, no amount of explanation will help. So keeping silence, at least for some time, is the best response".

People who believe you, need no explanation.

People who do not believe you, no amount of explanation will help.

So keeping silence, at least for some time, is the best response.

— P R Sundar (@PRSundar64) May 27, 2023

Sundar has settled a case with markets regulator Sebi by returning the advisory fee and disgorging over Rs 6 crore. The case related to PR Sundar and Mangayarkarasi Sundar, promoters of Mansun Consulting, offering investment advice without the necessary registration from the market regulator.

Sundar, who runs a website www.prsundar.blogspot.com was offering various packages for providing advisory services and Sebi had received various complaints about it.

On inquiry, Mansun has submitted a list of recommendations provided by it for the month of January 2021. Upon analysis of a sample of such recommendations, Sebi observed that the recommendations were related to purchasing, selling, and dealing in securities which were communicated to the clients. Therefore, it was alleged that the recommendations provided by Mansun fall under the category of ‘investment advice’.

Following this, Sebi issued show cause notices to the entities giving them the opportunity to hear their version of the allegations.
Even as proceedings were underway, the entities filed three applications for settlement of the proceedings.

After the settlement, Sebi's order noted that the regulator will not initiate any other enforcement action against PR Sundar for the said violation.

Under the settlement, PR Sundar, Mangayarkarasi Sundar, and Mansun Consulting have agreed to a settlement amount of Rs 15.6 lakh each i.e. a sum of Rs 46.8 lakh to Sebi.

Further, they have agreed on a disgorgement amount of Rs 6.07 crore including interest at 12% per annum from June 01, 2020, till the date of submission of the settlement terms.

The fees collected in lieu of the services were received via a payment gateway linked to the bank account of Mansun Consultancy held with ICICI Bank.

The three entities will refrain from buying, selling, or otherwise dealing in securities in India for a period of one year from the date of passing of the settlement order.

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