sebi:Order/AN/RG/2024-25/31072

SEBI · SEBI · 2020-09-23 · Amar Navlani, Adjudicating Officer

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

Facts / Headnote

Alleged violations of SEBI IA Regulations, 2013, SEBI PFUTP Regulations, 2003, SEBI Act, 1992 and SEBI Circulars established; PFUTP allegations dropped in favour of Noticee

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 12
• s. 15I
• s. 15J
• s. 15F
• s. 28A
• s. 15C
• s. 24
• s. 15E

Regulations

• Reg. 7
• Reg. 4
• Reg. 2(c)
• Reg. 3
• Reg. 7(1)
• Reg. 2(1)(c)
• Reg. 17
• Reg. 25
• Reg. 15
• Reg. 2
• Reg. 3(a)
• Reg. 15(1)
• Reg. 23
• Reg. 7(2)
• Reg. 21(1)
• Reg. 19
• Reg. 7(1)(a)
• Reg. 15A
• Reg. 19(1)
• Reg. 15(9)

Parties

• Capital Ways Investment Adviser (Proprietor: Mr. Deepak Ostwal)

Holding

The Noticee was found to have violated multiple provisions of the SEBI IA Regulations, 2013, SEBI Circulars, and the Code of Conduct for Investment Advisers, including requirements for employee qualifications and certifications, fee limits, agreement terms, suitability assessment, record maintenance, and AML/CFT training. However, the allegations of fraudulent and unfair trading practices under the PFUTP Regulations were dropped in favour of the Noticee.

Full text

Adjudication order in the matter of Capital Ways Investment Adviser (Proprietor: Mr. Deepak Ostwal) |Page 2 of 86 2.1. Regulation 15(13) read with Regulation 7 of IA Regulation, 2013 and Clause 1, 2 and 8 of Code of Conduct for Investment Advisers as specified under Third Schedule read with Regulation 15(9) of IA Regulations, 2013 and Paragraph 2(iv) of SEBI circular dated September 23, 2020.

Adjudication order in the matter of Capital Ways Investment Adviser (Proprietor: Mr. Deepak Ostwal) |Page 3 of 86 Investment Advisers read with Regulation 15(9) of IA Regulations, 2013; Clause 2(ii) of Circular SEBI/HO/IMD/DF1/CIR/P/2020/182 dated September 23, 2020; Regulations 3 (a), (b), (c) and (d), 4(1) and 4(2)(k),4(2)(o), 4(2)(s) of PFUTP Regulations read with Section 12A (a), (b) and (c) of the SEBI Act 1992; Regulations 3 (a), (b), (c) and (d), 4(1) and 4(2)(k),4(2)(o), 4(2)(s) of PFUTP Regulations read with Section 12A (a), (b) and (c) of the SEBI Act 1992; Regulations 3 (a), (b), (c) and (d), 4(1) of PFUTP Regulations read with Section 12A (a), (b) and (c) of the SEBI Act 1992.

Adjudication order in the matter of Capital Ways Investment Adviser (Proprietor: Mr. Deepak Ostwal) |Page 4 of 86 Officer (“AO”) vide communique dated August 02, 2023 to inquire into and adjudicate under Sections 15A(a), 15C, 15EB and 15HA of the SEBI Act, 1992, for the aforesaid alleged violations of the Noticee. Thereafter, the matter was reallocated and Shri Biju S., CGM SEBI was appointed as Adjudicating Officer vide communique dated May 03, 2024. Subsequent to transfer of Shri Biju S., the matter was reallocated to the undersigned vide Communique dated July 29, 2024.

Source: SecMarx — sebi:Order/AN/RG/2024-25/31072. 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.