sebi:QJA/AA/WRO/WRO/25241/2022-23
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Facts / Headnote
Violation established; Noticee directed to refund fees collected from investors within 3 months, debarred from securities market for 3 years, and imposed Rs.1,00,000 penalty.
Provisions invoked
- s. 11
- s. 15
- s. 19
- s. 12(1)
- s. 11B
- s. 12
- s. 15J
- s. 15F
- s. 28A
- s. 15E
Regulations
- Reg. 3
- Reg. 16
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(m)
Parties
- M/s Wealth Group/Wealth Finance (Proprietor: Mr. Remish Tirkey)
Holding
The Noticee acted as an unregistered investment adviser in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations, 2013, and was directed to refund Rs.86,34,051 collected, debarred for three years, and penalized Rs.1,00,000 under Section 15EB.
Full text
Order in respect of M/s Wealth Group/ Wealth Finance Page 2 of 18 obtaining a certificate of registration from 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 M/s Wealth Group/ Wealth Finance Page 3 of 18 (d) It is alleged that the Noticee’s bank account statement contained transaction with narrations such as tips, investment advise, advisory fees, stock market fees, trading fees, fees for tips etc., which indicate that the bank account was used by the Noticee for receiving money for unregistered investment advisory activities. (e) It is alleged that from the information available on record as detailed herein above, prima facie, it appears that the Noticee is providing Investment Advisory services. Further, examination of records available with SEBI revealed that the Noticee is not registered with SEBI in any capacity. Therefore, it is alleged that the Noticee has engaged in the activities of an ‘investment adviser’ as defined under regulation 2(m) of the IA Regulations, 2013 and by not getting the registration as required under the Regulations, the Noticee has violated Regulation 3(1) of the said regulation, read with section 12(1) of SEBI Act.
Order in respect of M/s Wealth Group/ Wealth Finance Page 4 of 18 7. SEBI received an email dated February 20, 2023 from the Noticee informing that the main advocate in the matter, Mr. Ashish Pareek had to rush for a medical emergency. On this ground, the Noticee sought an adjournment which was granted and the hearing was scheduled on February 23, 2023. The Noticee was also informed that response to the SCN, if any, may be filed on or before the date of personal hearing. On February 22, 2023, the Noticee sought additional time of one week to submit his reply. Accordingly, the Noticee was advised to file his reply on or before March 01, 2023. Further, hearing in the matter was scheduled on March 02, 2023. Thereafter, vide email dated March 02, 2023, the Noticee’s AR has sought additional time to submit his reply.
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Source: SecMarx — sebi:QJA/AA/WRO/WRO/25241/2022-23. 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.