sebi:QJA/AA/SRO/SRO/30278/2024-25
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Facts / Headnote
Violation of Section 12(1) SEBI Act read with Regulation 3(1) IA Regulations established; PFUTP fraud charges dropped; refund of Rs.99,800, 6-month securities market restraint and Rs.1,00,000 penalty imposed
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 11B
- s. 12A
- s. 12
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 15E
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 2(1)
- Reg. 2
- Reg. 3(a)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- Mr. Vivek Krishnamoorthy
Holding
Noticee acted as unregistered investment adviser in violation of Section 12(1) SEBI Act and Regulation 3(1) IA Regulations and must refund Rs.99,800 with penalty and market restraint, but fraud under PFUTP was not established.
Full text
Order in respect of Mr.Vivek Krishnamoorthy - Trade Sharks Page 2 of 24 SEBI, thereby violating Section 12 (1) of the SEBI Act, 1992 read with Regulation 3 (1) of the IA Regulations, 2013.
Order in respect of Mr.Vivek Krishnamoorthy - Trade Sharks Page 3 of 24 4.1 SEBI received a complaint inter-alia alleging that the services were offered by the noticee through the Telegram Channel under the name of Trade Sharks i.e. https://t.me/tradesharks01. The complainant had submitted, inter alia, the screenshot of investment advisory packages mentioned in the Telegram Channel “Trade Sharks” and partial phonepe payment screenshot of Rs. 2,200 made to mobile no. 78xxxxx522 of Noticee and two screenshots of purchased subscription of Rs.2,999 on 20.09.2022 named ‘Trade Sharks Premium’. Vide email dated 25.03.2023 the complainant had shared the details of HDFC bank account no. 501xxxxxxxx051 of the Noticee which was stated to be used for collecting fees. 4.2 The messages posted in the telegram channel https://t.me/tradesharks01 mentioned in the complaint ascertained that investment advice for consideration was being offered. 4.3 From the telegram chats and the screenshots from telegram channel shared by the complainant, it was observed that various packages for investment advisory services were being offered by the noticee. 4.4 SEBI vide letter and email dated 30.03.2023 forwarded the complaint to the Noticee and he was advised to submit the information relating to the services offered by him through a Telegram Channel under the name of Trade Sharks. He was also advised to refrain from all unregistered investment advisory / research analysis / portfolio management or any oth
Order in respect of Mr.Vivek Krishnamoorthy - Trade Sharks Page 4 of 24 investment advisory services / packages marketed on the Telegram Channel. The narration / description of multiple credit transactions in the said account had the terms with respect to investment advisory services viz., trading, trade, calls, premium. 4.7 From the analysis of the credits received in the HDFC Bank account of the noticee since the date of creation of the Telegram Channel i.e 19.05.2022 and taking into consideration the submissions of the noticee, atleast Rs.99,800/- are considered as fees collected by the noticee during the period. Noticee vide email dated 14.08.2023 has admitted that he has provided investment advice and has collected this amount in his HDFC Bank account. 4.8 The noticee in his reply dated 03.04.2023 has stated that he had disclosed on the telegram channel that he is not a SEBI registered financial advisor. Hence, the noticee although being aware that it is mandatory to be registered with SEBI in order to provide investment advisory services has offered various packages for investment advisory services in his Telegram Channel and held himself out as an investment adviser. Hence it is further alleged that Noticee has engaged in fraudulent practices in securities market with an intention to deceive the gullible investors. The said non genuine and deceptive activities were fraudulent. 4.9 On the basis of evidence gathered from the complaint, messages posted in telegram channel
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Source: SecMarx — sebi:QJA/AA/SRO/SRO/30278/2024-25. 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.