sebi:EAD-4/SRP/AE/AO/2018-19/13
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Facts / Headnote
Penalty imposed on the Noticee for unregistered investment advisory services
Provisions invoked
- s. 15
- s. 12(1)
- s. 15H
- s. 15J
Regulations
- Reg. 3(1)
Parties
- Ms. Archana Matta
Holding
The Noticee, Ms. Archana Matta, was held liable for violating Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013 and Section 12(1) of the SEBI Act, 1992 by being involved in unregistered investment advisory services, and a penalty of Rs. 2,00,000 was imposed under Section 15HB of the SEBI Act, 1992.
Full text
Page 2 of 11 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 3. A Show Cause Notice dated June 28, 2018 (hereinafter referred to as 'SCN') was issued to the Noticee in terms of Section 15 I of the SEBI Act, 1992 read with Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “Rules”) for the violations alleged to have been committed by the Noticee, as specified in the SCN.
Page 3 of 11 vii. I am extremely regretful for this act which occurred due to my negligence and also understands its larger implications of this error from the perspective of regulator and public at large. viii. I am considering this as most crucial learning of my life and ensure you that such sort of activities will never be repeated. ix. I humbly request you to condone this act which happened due to my ignorance of respective regulations pertaining to SEBI Investment Advisors.
Page 4 of 11 FINDINGS 7. Before I proceed with the matter, it is pertinent to mention the relevant provisions of the Act/Regulations alleged to have been violated by the Noticees. The same are reproduced below: SEBI (Investment Advisers) Regulations, 2013 Application for grant of certificate. 3.(1) On and from the commencement of these regulations, no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board under these regulations: Provided that a person acting as an investment adviser immediately before the commencement of these regulations may continue to do so for a period of six months from such commencement or, if it has made an application for a certificate under sub- regulation(2) within the said period of six months, till the disposal of such application. SEBI Act, 1992 Registration of stock brokers, sub-brokers, share transfer agents, etc. 12 (1) No stock broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market shall buy, sell or deal in securities except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act: Provided that a person buying or selling securities or otherwise dealing
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Source: SecMarx — sebi:EAD-4/SRP/AE/AO/2018-19/13. 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.