An independent equity analyst has been banned from trading for three years and banned from registration for one year under a deal reached with the Ontario Securities Commission (OSC).
The OSC says it has approved a settlement agreement with Alka Singh and her company Mine2Capital Inc., which prepared and sold research reports on mining companies.
According to the settlement agreement dated March 24, Singh and Mine2Capital distributed the reports while relying on an exemption that they were not entitled to because she had undisclosed financial interests in a couple of the companies that she covered.
However, the settlement also notes that, among other mitigating factors, they did not benefit from owning shares in these firms, and that she generally lost money on these trades. Also, it says that the company sold relatively few reports, which were aimed at institutional investors. Nevertheless, the OSC found that Singh and her company did provide advice in securities without being registered, or qualifying for an exemption.
Under the deal, Singh and Mine2Capital are both banned from trading for three years, banned from registration for a year, and ordered to pay $5,000 in cost.
Additionally, Singh is prohibited from becoming a director or officer of an issuer, registrant, or investment fund manager for one year.