sebi:AO/SM-DL/WRO-II/1/2017
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Facts / Headnote
Penalty of Rs 6,00,000 imposed jointly and severally under Section 15HB; exonerated under Section 15A(a)
Provisions invoked
- s. 15A
- s. 15
- s. 12(1)
- s. 12
Regulations
- Reg. 3
- Reg. 2
- Reg. 201
Parties
- M/s. Global Mount Money Research and Advisory Pvt. Ltd.
- Mr. Ajay Kumar Gupta
- Mr. Arpit Kothari
- Mr. Rajeev Singh Rajput
Holding
The Noticees acted as an unregistered Investment Adviser in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations and are liable to a penalty of Rs 6,00,000 jointly and severally under Section 15HB, while being exonerated under Section 15A(a).
Full text
Page 2 of 14 2. As the aforesaid information / details obtained from the above mentioned website during the preliminary examination prima facie indicated that the activity of the Noticees is in the nature of offering stock market advisory tips and investment advisory services to clients, the concerned department of SEBI vide letters dated August 22, 2013 and September 25, 2013 had advised the Noticees to forward the documents/information as mentioned in the aforesaid letters. However, it was observed by SEBI that the Noticees had failed to respond to the aforementioned letters and also failed to deactivate the website through which the Noticee(s) was providing stock market advisory tips and investment advisory activities to its clients.
Page 3 of 14 SHOW CAUSE NOTICE, REPLY AND HEARING 5. Common Show Cause Notice ref No. WRO/AO/SM/28486/87/89/90/2014 dated September 26, 2014 (hereinafter referred to as 'SCN') was issued to the Noticees in terms of the provisions of Rule 4 (1) of the Adjudication Rules, to show cause as to why an inquiry should not be held against the Noticees and
Page 4 of 14 6. The submissions made by the Noticees are mainly to the following effect: a. Ajay Kumar Gupta(Noticee-2): Without stating anything specific, he submitted certain documents and requested to take lenient view in the matter. b. Arpit Kothari: (Noticee-3): He was not associated with Global Mount Money Research and Advisory Pvt. Ltd. He submitted the following documents in support of his said contention: (i) Undertaking/Declaration with respect of his resignation from the directorship of the company i.e. Global Mount Money Research and Advisory Pvt. Ltd. ,(ii) Copy of mail to Mr. Rajjiv Singh Rajput, Director of the Company and company’s official mail ID, (iii) Copy of form No. DIR 11 Filled with Ministry of Corporate Affairs along with its paid challan bearing SRN No. S37391596,. (iv) Approved status of form no. DIR 11 on Ministry of Corporate Affairs Website. (Screen shot of approval status, (v) Approval Mail of SRN S37391596 as an acknowledgement from ministry of Corporate Affairs,(vi) Audited balance sheet and profit & loss Accounts for the financial year ended 31st March, 2013. In his case, he has filed his resignation in DIR 11 with Ministry of Corporate affairs vide SRN No. S37391596 that’s why directorship of Global Mount Money Research and Advisory Pvt. Ltd. has been removed from his directorship status on Ministry of Corporate Affairs' website (Screen shot of nil directorship status is attached herewith in Annexure No. 4) Company has not filled DIR 12 on t
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Source: SecMarx — sebi:AO/SM-DL/WRO-II/1/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.