sebi:Order/BM/GN/2024-25/30714

SEBI · SEBI · 2024-03-15 · Barnali Mukherjee, Adjudicating Officer

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Facts / Headnote

SCN dated April 03, 2024 disposed of without imposition of penalty under Section 15HB

Provisions invoked

• s. 15H
• s. 15J

Regulations

• Reg. 13
• Reg. 31(2)
• Reg. 31

Parties

• Incred Capital Wealth Portfolio Manager Private Limited

Holding

The alleged violation of Regulation 31(2) and Clause 2 of Schedule III read with Regulation 13 and SEBI Circular dated January 22, 2007 does not stand established against the Noticee. The SCN dated April 03, 2024 is disposed of without imposition of penalty under Section 15HB.

Full text

Adjudication Order in the matter of Incred Capital Wealth Portfolio Manager Private Limited Page 2 of 10 APPOINTMENT OF ADJUDICATING OFFICER 4) SEBI, vide communiqué dated March 15, 2024, appointed the undersigned as the Adjudicating Officer to inquire into and adjudge under the provisions of Section 15HB of the SEBI Act for the violations alleged to have been committed by the Noticee. SHOW CAUSE NOTICE, REPLY AND HEARING 5) Show Cause Notice (hereinafter being referred to as the “SCN”) dated April 03, 2024 was issued to Noticee in terms Rule 4(1) of Adjudication Rules to show cause as to why an inquiry should not be initiated against Noticee and why penalty, if any, should not be imposed upon Noticee under Section 15HB of SEBI Act for the alleged violations of Regulation 31(2) of the Merchant Bankers Regulations, 1992 and Clause 2 of Schedule III (Code of Conduct for Merchant Bankers) read with Regulation 13 of the Merchant Bankers Regulations and SEBI Circular MIRSD/DPS III//Cir-01/07 dated January 22, 2007. 6) Following are allegations made against the Noticee in the SCN- a) During inspection it was observed that Noticee has not provided reasonable and timely access to the Inspection team to verify the designated investors’ grievance email id of the Noticee i.e. customer.grievance@incredcapital.com and deleted the test email before verification by the inspection team and therefore, the due verification of the investors’ grievance email id of the Noticee, by the Inspecting

Adjudication Order in the matter of Incred Capital Wealth Portfolio Manager Private Limited Page 3 of 10 Noticee specified the documents for inspection. In view of the same, vide email dated May 30, 2024 inspection of the documents as sought by Noticee was scheduled on June 06, 2024 and the inspection of documents was completed on the scheduled day. 8) In the interest of natural justice, an opportunity of personal hearing was granted to Noticee on July 18, 2024 vide hearing notice dated June 21, 2024. The said hearing notice was sent to Noticee through SPAD and digitally signed email dated June 24, 2024 and was duly served upon Noticee. Vide email dated July 12, 2024 Noticee submitted its reply which is summarized below- a) Noticee submitted that the test mail was deleted due to an inadvertent error, the mails addressed to the address customer.greivance@incredcapital.com were also being directed to the address of the compliance officer, as the work flow was very minimal during the inspection period, the test email was available at the email address of the compliance officer. b) Noticee submitted that there was no grievances received at all either to the customer grievance address or at compliance officer’s email address, there were no complaints received on the SEBI SCORES platform also. c) Noticee submitted that it provided reasonable and timely access to the inspection team. It has maintained high standards of integrity, dignity and fairness in the conduct of business. d) N

Adjudication Order in the matter of Incred Capital Wealth Portfolio Manager Private Limited Page 4 of 10 of natural justice vide email dated July 30, 2024, another opportunity of hearing was provided to the Noticee on August 07, 2024. Vide email dated July 31, 2024 Noticee sought adjournment of hearing scheduled on August 07, 2024. In view of the same, vide email dated July 31, 2024 the hearing was rescheduled to August 12th, 2024. AR of the Noticee attended the hearing on the scheduled day and reiterated the submissions already made vide reply dated July 12, 2024. During hearing AR also referred to the following additional documents - (a) Declaration dated August 10, 2023 by compliance officer of the Noticee. (b) Noticee’s letter dated January 25, 2024 to SEBI. (c) Noticee’s reply dated November 04, 2023 to the preliminary findings of inspection 11) During hearing AR further sought time till August 19, 2024 for making additional

Source: SecMarx — sebi:Order/BM/GN/2024-25/30714. 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.