sebi:CO/27/SRO/09/2004

SEBI · SEBI · G N Bajpai, Chairman

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Restrained the noticee from buying, selling or dealing in securities directly or indirectly and from accepting loans or deposits intended for the share market from the public with immediate effect, till further orders; objections to be filed within 15 days.

Provisions invoked

• s. 11B
• s. 4(3)

Parties

• Shri Krishna Hullatti (alias) Hullatti Krishna B (alias) Krishnaraj, proprietor of M/s Matrix Web

Holding

SEBI restrained Shri Krishna Hullatti, proprietor of M/s Matrix Web, from dealing in securities or accepting loans/deposits for the share market from the public, as he was acting as a market intermediary without SEBI registration.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER Under Section 11B and 11(4)(b) of Securities and Exchange Board of India Act, 1992 against Shri Krishna Hullatti ( alias) Hullatti Krishna B (alias) krishnaraj, proprietor of M/s Matrix Web.

shares get 150 shares" and has also informed the public about availability of many more profitable schemes. The said advertiser had also advertised inviting the public to invest money(in safe) like mutual fund for more and regular returns and had provided the contact Numbers as Krishnaraj - 26529420/9448061029. On further enquiries, it has come to the notice of SEBI that the advertiser is one Shri. Krishna Hullatti, Proprietor of M/s Matrix Web and is operating from No.92, Dr. Masti Venkatesh Iyengar Road, 2nd Cross, Gavipuram Extension, Hanumantha Nagar, Bangalore 560 019, who actually deals with the investing public. It has further come to our notice that the said Shri. Krihna Hullatti, maintains an exclusive Client registration forms for each of the clients who would be interested in investing their money with him for dealing in the capital market. It is observed that neither the said Shri. Krishna Hullatti nor his firm M/s Matrix Web is registered with SEBI in any capacity either as a Stock Broker or as a Sub-broker or as a Portfolio Manager to deal with the public in the capital Market on their behalf and has only registered himself as a client with two Stock Brokers Viz: Sushil Stock Brokers P Ltd, India Bulls Securities Ltd, with Client Codes SKOKH1, 19944 and with another stock broker -ICICI Web trade in the name and style of Hullatti Krishna B with client code 8500271043 with the aforesaid contact address. By such registration as a client with the stock brokers, the

the 150% of shares supposed to have been bought by him and the same is paid to the client after deducting a certain sum as brokerage and also an interest for the period of retention of the shares by him on behalf of the clients until the sale. In the first place, the aforesaid activity of the individual is totally illegal as he is not registered with SEBI to carry on any activity either as a Portfolio Manager or as a Stock broker / sub broker or in any other capacity as a market intermediary. Secondly, no authentic and legally binding documents are issued to the clients indicating the Order No/ Trade No., Order quantity, rate of contract etc towards fulfillment of his obligations / enforcement of the rights of the clients on him. Further, as the said individual is not registered with SEBI to act in the Capital market on behalf of clients in any capacity, in the event of the individual failing to meet his obligations to the investors, the normal recourse available to the investors while trading with a registered intermediary may not be available in this case. From the foregoing it is only apparent that the said individual without any registration from SEBI to act in the capacity of a Stock broker or a Sub-broker or as a Portfolio Manager is acting on behalf of the investing public in the Capital Market in buying and selling of shares for them and luring the investors with a promise of huge returns and only profits. It is needless to state that such an activity is not only ille

Source: SecMarx — sebi:CO/27/SRO/09/2004. 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.