Kapoor’s activities were found to be in violation of Sebi (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, and Sebi (Portfolio Managers) Regulations, 1993.

During 2003, Kapoor was carrying on similar operations from Kolkata through Delta Alliance Financial Services Investments. Sebi debarred the firm in January 2004 . After the order was passed, Kapoor shifted his operations in the name of another Kolkata-based firm — Delta Alliance Investments.

Modus operandi

• Kapoor would solicit investments through misleading advertisements, mass messaging, emails and telephone calls

• Advertisements contained deceptive claims like ‘Loss 100 per cent borne by us’