sebi:Order/GR/KG/2020-21/9683
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Facts / Headnote
Violations established; aggregate penalty of Rs. 8,00,000 imposed on Noticee
Provisions invoked
- s. 11B
- s. 15
- s. 19
- s. 11
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 15C
Regulations
- Reg. 7
- Reg. 16
- Reg. 21
- Reg. 15(1)
- Reg. 13(a)
- Reg. 7(2)
- Reg. 201
- Reg. 15(9)
- Reg. 6(b)
- Reg. 15C
Parties
- Mr. Tabrez Khan (proprietor of Zoid Research (Investment Advisor))
Holding
The Adjudicating Officer held Mr. Tabrez Khan, proprietor of Zoid Research, liable for violations of the IA Regulations, 2013 and SEBI grievance-redress circular and imposed a penalty of Rs. 4,00,000 under Section 15C and Rs. 4,00,000 under Section 15HB of the SEBI Act, aggregating to Rs. 8,00,000.
Full text
Page 2 of 34 Adjudication Order in respect of Mr. Tabrez Khan (proprietor of Zoid Research (Investment Advisor) 2. The Securities and Exchange Board of India (hereinafter, referred to as “SEBI”) has been receiving large number of complaints against the Noticee. The complainants have inter alia alleged that the Noticee had assured them of guaranteed return from the investments made on its advice, charged them exorbitant and progressively increasing fees, misrepresented about its employees while soliciting payments from them and non-redressal of the grievances of the investors.
Page 3 of 34 Adjudication Order in respect of Mr. Tabrez Khan (proprietor of Zoid Research (Investment Advisor) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter, referred to as “SEBI Adjudication Rules 1995”) to conduct adjudication proceedings and inter-alia in respect of the Noticee, in the manner specified under Rule 4 of the SEBI Adjudication Rules, 1995 read with Section 15-I (1) and (2) of the SEBI Act, and if satisfied that penalty is liable, to impose such penalty deemed fit in terms of Rule 5 of the SEBI Adjudication Rules 1995 under Section 15C and section 15HB of the SEBI Act.
Page 4 of 34 Adjudication Order in respect of Mr. Tabrez Khan (proprietor of Zoid Research (Investment Advisor) these products are subject to market risk. Therefore, it is prima facie observed that promising assured return to the client, while knowing the market risks associated with such investments, isan act of being dishonest on the part of the Noticee and also not acting in the best interest of the clients, thereby violating clause 1 of Code of Conduct for Investment Adviser r/w regulation 15(9) of IA Regulations, 2013.
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Source: SecMarx — sebi:Order/GR/KG/2020-21/9683. 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.