An investment banking advisory firmbased in Dubai International Financial Centre (DIFC) which has business links with Bollywood actor-producer Anil Kapoor was censured and directed to pay compensation on Monday by the Dubai Financial Services Authority or DFSA for contravening the authority's law and rules.

DFSA said it had censured MAS Clearsight and directed it to compensate Dh12.04 million to 20 investors.

"Had it not been for MAS' financial position and the DFSA's decision to require MAS to pay compensation to the investors the DFSA would also have imposed a financial penalty on MAS" the authority said in a statement.

In 2014 actor Kapoor launched a global entertainment company Antila Ventures in association with MAS Clearsight.

In a joint statement with Kapoor Anish Bhatia CEO of MAS Clearsight had said: "Mr Kapoor and MAS worked as a team to put a strategy and structure in place leading to the formation of Antila Ventures. MAS Clearsight within its global network and through its clients has arranged to seed this venture referring strategic investors."

Kapoor said Antila Ventures to be domiciled in the UK would include units for content creation filmmaking state-of-the-art studios talent management and acquisition.

"I have long nurtured a dream of creating a global entertainment company. Given my vast experience in the Indian film industry and exposure in recent years in Hollywood I felt the time was right to give shape and structure to this vision" said Kapoor.

In June 2015 the DFSA suspended MAS' DFSA licence to stop it from conducting any financial services in the DIFC.

The regulator said that during 2010 to 2011 MAS Clearsight had been marketing investment opportunities in the production of limited edition publications. The company had told investors they would be repaid 100 per cent of their initial investment plus a further minimum return of 50 per cent of their total investment.

However the publications have not been produced and the investors have not been repaid their initial investment or the returns they were promised.

In July 2013 some of the investors complained to the DFSA about their investments through MAS.

The DFSA investigated the matter andfound thatMAS had promoted a collective investment fund in a manner that did not comply with the applicable laws and rules.

In addition the investors were not properly treated as clients by MAS and were thereby excluded from receiving the other protections they were entitled to under the DFSA's regulatory regime.

Ian Johnston chief executive of the DFSA said: "The DFSA's laws and rules provide important protections for investors.These protections are designed to ensure that investors are fully informed about the investments they make and that the investments are suitable for them.As this action against MAS shows the DFSA will take appropriate action against anyone who fails to provide investors with the required regulatory protections."

MAS initially challenged the DFSA's decision notice and referred the decision to the financial markets tribunal (FMT) which is empowered to review decisions made by the DFSA.However on November 19 2015 the DIFC Courts ordered a liquidator to be appointed to MAS.

The liquidator decided not to proceed with the challenge against the DFSA's decision.Accordingly the FMT dismissed the appeal thereby confirming that the DFSA's decision notice remains in effect.

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