sebi:QJA/AA/MIRSD/MIRSD-SEC-4/29901/2023-24
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Facts / Headnote
Held that Noticees 1-3 acted as unregistered investment advisers through SK Sales/Stockkhoj in violation of Section 12(1) of SEBI Act read with Regulation 3(1) of IA Regulations, with refund of fees collected envisaged.
Provisions invoked
- s. 11
- s. 15
- s. 19
- s. 11(1)
- s. 12(1)
- s. 11B
- s. 12
- s. 15H
- s. 27
- s. 15J
- s. 15F
- s. 28A
- s. 25
- s. 15E
Regulations
- Reg. 3
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- SK Sales
- Sandeep Subhashbhai Borse
- Kalyani Sandeep Borse
Holding
The Noticees engaged in the business of providing investment advice to the public for monetary consideration through partnership firm SK Sales without registration, and Noticees 2 and 3 carrying out IA activities through unregistered Noticee 1 are liable for violation of Section 12(1) of SEBI Act read with Regulation 3(1) of IA Regulations.
Full text
Order in respect of SK Sales and its partners Page 2 of 42 certificate, but the same was not provided to him. On examination, SEBI observed that the website with a domain name www.stockkhoj.com was being operated by the Noticees. One of the documents attached to the complaint filed by the complainant contained the invoice which bore the name of SK Sales (Noticee 1). On examination of the documents which were provided by Easebuzz w.r.t Stockkhoj, it was observed that the bank account was in the name of SK Sales which is a partnership firm with Sandeep Subhashbhai Borse (Noticee 2) and Kalyani Sandeep Borse (Noticee 3) who were the partners in the firm.
Order in respect of SK Sales and its partners Page 3 of 42 them in terms of Rule 4 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 and penalty be not imposed upon the Noticees under Section 11(4A), 11B(2) read with Section 15HB and Section 15EB of SEBI Act,
Order in respect of SK Sales and its partners Page 4 of 42 (d) On an analysis of the AOFs and KYC details received from HDFC Bank, it was noted that SK Sales was a partnership firm formed by way of Deed of Partnership dated 15.09.2018 with Sandeep Subhashbhai Borse and Kalyani Sandeep Borse as partners. (e) On an examination of the bank statement of SK Sales with Account No. 502xxxxxxxx098 with HDFC Bank which was linked to the payment gateway Easebuzz it was noted that the bank account was opened on 09.10.2018. There was a total credit of Rs.2,34,42,789.49. As on 18.02.2022 the closing balance in the account was found to be zero. The last credit entry in the account was on 03.07.2020. The status of the bank account was ‘Regular’ as on 17.02.2022. (f) On an examination of the bank statement of SK Sales with Account No.187xxxxxx601 with ICICI Bank was opened on 24.10.2018. There was a total credit of Rs.1,63,59,543.70. As on 26.08.2021, the closing balance was Rs.51,145.20 and the last credit entry in the account was on 16.03.2020. ICICI Bank has informed that as on 29.09.2021 the account status is ‘Open’. (g) The account statements of both HDFC Bank and ICICI Bank contained various credit entries with the terms “broking”, “consultancy”, “investment”, “share”, “fees” “trade”, “advisory tips” etc. (h) All credit entries after opening of bank accounts in HDFC Bank and ICICI Bank i.e.a total amount of Rs.3,98,02,342.19 are being considered as monies received for the unregistered
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Source: SecMarx — sebi:QJA/AA/MIRSD/MIRSD-SEC-4/29901/2023-24. 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.