sebi:QJA/GG/MIRSD/MIRSD-SEC-4/22820/2022-23
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Facts / Headnote
Certificate of registration granted to Gagan Hora (SEBI Registration No. INA000011529) cancelled with immediate effect
Provisions invoked
- s. 11B
- s. 19
- s. 12(1)
- s. 11(1)
Regulations
- Reg. 27
- Reg. 3(1)
- Reg. 2(1)(m)
- Reg. 24
- Reg. 27(4)
Parties
- Gagan Hora
Holding
The certificate of registration granted to Gagan Hora as Investment Adviser is cancelled for violating Clauses 1 and 8 of the Code of Conduct and failing the fit and proper criteria by knowingly enabling unregistered advisory activity by Signal2Success/Ravi Tripathi.
Full text
Order in the matter of Gagan Hora Page 2 of 21 and in view of the same had violated Clauses 1 and 8 of the Code of Conduct for Investment Adviser as laid down in the Third Schedule of SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as the "IA Regulations") and Fit and Proper Criteria as specified under Schedule II to SEBI (Intermediaries) Regulations, 2008 (hereinafter referred to as the "Intermediaries Regulations").
Order in the matter of Gagan Hora Page 3 of 21 substituted with “Competent Authority” in Regulation 27. Thereafter, in August 2022, the matter was allocated to me in place of the DM. As the matter prima facie appeared to be a fit case for cancellation of registration, an opportunity of personal hearing was granted to the Noticee on September 28, 2022, wherein the matter was part heard and thereafter again taken for hearing on October 3, 2022. On the scheduled dates, the Authorised Representatives (AR) of the Noticee, Mr. Varun Byreddy, Advocate along with the Noticee himself, appeared for the hearing via web-conferencing and made submissions. During the hearing as well as in his written submissions dated June 28, 2022, the Noticee inter alia reiterated and sought to rely upon his
Order in the matter of Gagan Hora Page 4 of 21 g. The Noticee provided advice only on large cap Future and Option Stocks, Nifty and Bank Nifty. The Noticee had nothing to do with the business or clients of Signal2Success. The Agreement did not authorise Signal2Success to further distribute the advisory services rendered by the Noticee. h. The Noticee had received physical copies of KYC documents of Signal2Success but had misplaced the same while shifting home amid covid restrictions. The Noticee had lodged a police complaint regarding the same. i. Ravi Tripathi had verbally informed the Noticee of the registration of Signal2Success as an IA. No occasion arose for the Noticee to seek registration details of Signal2Success. j. On receipt of the complaint from SEBI on January 24, 2020, the Noticee had duly responded to the same and denied any transactions with the complainant or ownership of Signal2Success. k. Ravi Tripathi has misused the registration number of the Noticee without any authorization to do so. The Noticee was not the owner/ partner of Signal2Success. The Noticee’s name appears nowhere in the registration/ ownership details of Signal2Success. The SCN has been issued on the basis of one stray line in the Whatsapp conversation. l. Details of registered investment advisers are available for all to view on the SEBI website. An IA cannot be expected to check innumerable websites to see if anyone is misusing his registration number. m. The registration number of the Not
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Source: SecMarx — sebi:QJA/GG/MIRSD/MIRSD-SEC-4/22820/2022-23. 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.