sebi:ED/SP/WRO/WRO/20471/2022-23
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Facts / Headnote
Noticee found to have acted as unregistered investment adviser; directed to refund Rs.25,88,183.16 to clients/investors within three months with public notice and CA-certified report, restrained on assets/bank debits except for refunds, debarred from securities market for 6 months, and directed to deposit unclaimed balance with SEBI in escrow.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12
Regulations
- Reg. 3
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- SG Consultant
- Umesh Chourasiya
Holding
The Noticee (SG Consultant, proprietor Umesh Chourasiya) acted as an investment adviser without SEBI registration in violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013, and was directed to refund Rs.25,88,183.16 and debarred from the securities market for 6 months.
Full text
Final Order in the matter of SG Consultant Page 2 of 14 3. The Noticee was called upon to show cause as to why suitable directions under Sections 11(1), 11(4) and 11B(1) of the SEBI Act should not be issued /imposed against the Noticee for the violations alleged in the SCN.
Final Order in the matter of SG Consultant Page 3 of 14 b) I have started SG Consultant after gaining knowledge of the market and doing a lot of research. c) I have never used “SEBI” word anywhere on any digital platform. The moment I came to know everything about the compliance requirements of SEBI, I decided to shut down the business as I was unaware about the compliance requirements of SEBI and started focusing on further studies and government competitive exams and appeared for several exams as well during this period. d) I am well educated belong to middle class family had no intention of violating the provisions of any laws and the alleged violations have occurred due to the unawareness of Regulations and lack of understanding about the applicable laws.
Final Order in the matter of SG Consultant Page 4 of 14 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 immediately before the establishment of the Board for which no registration certificate was necessary prior to such establishment, may continue to do so for a period of three months from such establishment or, if he has made an application for such registration within the said period of three months, till the disposal of such application: Provided further that any certificate of registration, obtained immediately before the commencement of the Securities Laws (Amendment) Act, 1995, shall be deemed to have been obtained from the Board in accordance with the regulations providing for such registration.”
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Source: SecMarx — sebi:ED/SP/WRO/WRO/20471/2022-23. 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.