sebi:EAD-4/SRP/AE/AO/2018-19/08-12
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on Noticee Nos. 2 and 3; no penalty on Noticee Nos. 1, 4, and 5
Provisions invoked
- s. 15
- s. 12(1)
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(1)
Parties
- CA. Archana Matta
- Everonn Research & Consultancy Pvt. Ltd.
- Mr. Nitin Gangwal
- Mr. Sudhir Bangur
- getResearch
- Research4u
Holding
The Noticees violated Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013 and Section 12(1) of the SEBI Act, 1992 by providing unregistered investment advisory services, and a penalty of Rs. 6,00,000/- was imposed jointly and severally on Noticee Nos. 2 and 3, while no penalty was imposed on Noticee Nos. 1, 4, and 5 as they no longer exist.
Full text
Page 2 of 13 15HB of the SEBI Act, 1992, the aforesaid violations alleged to have been committed by the Noticees. Consequent to the transfer of Shri Biju S, the undersigned was appointed as AO vide Order dated July 06, 2018 in the present matter.
Page 3 of 13 securities except in accordance with condition of certificate obtained from SEBI in accordance with the regulation made under the Act, but when we started these advisory Services there were no such rules and regulations issued by SEBI or any other the regulator. iv. These new provisions of SEBI (Investment Advisors) Regulations, 2013 came into effect from April, 2013 which were applicable on us since September, 2013 (6 month transitional period), we were required to had Rs. 25Lacs of networth the company but we couldn't manage to raise the capital of Rs. 25 Lacs to comply with the guidelines during the said transitional period, so we started to stop our investment advisory activities related to securities and shifted to our advisory services related to commodities derivative markets trading by considering the compliance norms. v. We were continuously trying to raise our networth up to the required i.e. Rs. 25 lacs by issuing further capital but not getting success, in between it came to our notice and we also read the Investment Advisers Regulations, 2013 published by SEBI and under Chapter II Point 4f - Exemption from Registration, it was mentioned that - Any member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost and Works Accountants of India, Actuarial Society of India or any other professional body as may be specified by the Board, who provides investment advice to their clients, incidental to his/h
Page 4 of 13 getResearch (Noticee No. 5) and Research4u (Noticee No.6), were not separate entity, these were just two different website (trade name) of the Noticee No. 2 and We Nitin Gangwal (Noticee No. 3) and Sudhir Bangur (Noticee No.4) were director of Noticee No.-2. ix. We hereby want to submit that Noticee No. 2 were a company, now is not in existence has already been dissolve in October 2017 (Notice of striking off and dissolution enclosed for your verification), had investment advisory activities which were started before the SEBI Regulation and when these regulations became applicable we started to shut down our activities related to shares and equities and shifted to advisory services related to commodities i.e. Agri commodities, bullion, metals and combo (Agri commodities, bullion and metal commodities). x. Our activities were in very nurturing stage, we charged very small amount of fee for our services and we didn't generate any material revenue from it and couldn't manage to raise the capital for required networth, therefore started to stop our activities and completely stopped all the advisory services before receiving any communication from the SEBI and same has been submitted to the SEBI, Indore local office in our earlier replies. xi. Further, we hereby want to submit that we had completely stopped our investment advisory services in July, 2015 and since then 3 years has already been passed, during these 3 years no complaint related to our advisory services r
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:EAD-4/SRP/AE/AO/2018-19/08-12. 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.