The Securities and Exchange Board of India (SEBI) has imposed restrictions on Onelife Capital Advisors and its promoters, Pandoo Naig and Prabhakara Naig. This eliminates them from participating in securities markets until further notice. This action follows allegations of fund diversion and misrepresentation of the company finances.

Not only this, The Naig brothers are prohibited from serving as directors. This keeps them away from participation in key managerial positions at any listed company seeking to raise public funds. This also restricts them from taking part in any Sebi-registered intermediary, until further orders are issued.

Such moves are comendable from Sebi, as it maintains the integrity of the financial markets.

In an interim order passed on Monday, SEBI directed Onelife Capital Advisors Ltd (OCAL) and Naig brothers, to explain why appropriate directions or prohibitions should not be imposed against them. This notice comes amidst ongoing investigations into alleged fund diversion.

Oversight Failures In Onelife Capital Advisors Case

SEBI has criticized the oversight failures of compliance officers, audit committee members, and statutory auditors at the firm and among its promoters. According to SEBI, these individuals either overlooked or tacitly approved questionable practices. This allowed the promoters to engage in activities that jeopardized public shareholders. The regulator described the situation as a clear instance of unscrupulous behavior, warning of the serious implications for investors misled by such actions.

On SEBI’s Radar

Onelife Capital Advisors and its promoters wer on Sebi’s radar since October 2022. It issued a significant order following a complaint received back then. These compalints were about the same allegation involving Onelife Capital Advisors Ltd (OCAL) and Family Care Hospitals Ltd (formerly Scandent Imaging Ltd).

NSE examined the situation involving Onelife Capital following internal alerts regarding potential irregularities. In response, SEBI launched an investigation to determine if there had been any violations of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms and the Listing Obligations and Disclosure Requirements (LODR) rules.

Onelife Capital Advisors And Naigs Promoted Family Care Hospitals Ltd

Onelife together is an investment group specialized in investing in companies offering high growth opportunities. The company and its promoters, Pandoo Naig and Prabhakara Naig, are also associated with Family Care Hospitals Ltd. It is a company listed on the Bombay Stock Exchange (BSE). This connection has also drawn scrutiny following allegations.