sebi:QJA/GG/WRO/WRO/22284/2022-23
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Allegations of PFUTP violations not substantiated; violations of IA Regulations (Code of Conduct, risk profiling, fair fees) found; monetary penalty imposed under Section 15EB of SEBI Act
Provisions invoked
- s. 19
- s. 12A
- s. 15H
- s. 15E
- s. 11B(1)
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 17
- Reg. 15
- Reg. 3(a)
- Reg. 15(1)
- Reg. 19
- Reg. 15A
- Reg. 28
- Reg. 19(1)
- Reg. 202
- Reg. 15(9)
- Reg. 16(b)
- Reg. 35
- Reg. 18(6)
- Reg. 19(1)(e)
- Reg. 19(2)
Parties
- Bonaz Capital Investment Adviser
Holding
The Noticee was found to have violated Clauses 1, 2, 4 and 8 of the Code of Conduct under the Third Schedule of the IA Regulations read with Regulations 15(1) and 15(9) of the IA Regulations (improper risk profiling, failure to act in best interest of clients), and Regulation 6 (fair and reasonable fees), but the allegations of fraudulent and unfair trade practices under the PFUTP Regulations were not substantiated.
Full text
Order in respect of Bonaz Capital Investment Adviser Page 2 of 38 adequate steps for redressal of grievances of the investors were being taken and the conditions of registration were complied with.
Order in respect of Bonaz Capital Investment Adviser Page 3 of 38 risk profiling in back date to give impression that risk profiling is done prior to obtaining any advisory fees from the clients.
Order in respect of Bonaz Capital Investment Adviser Page 4 of 38 with securities market before services commenced. The welcome mail given to each client inter-alia mentioned that: - “ …(g) Past Performance is not an indicator of Future Returns. All the analyst commentary provided on bonazcapital.com is provided for information purposes only. (h) You understand and acknowledge that there is a high degree of risk involved while trading in securities. (i) Past results of any trader published on our website are not an indicator of future returns, and are not an indicator of future returns which be realized by you, investment in the market is subject to Market Risk………”
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Source: SecMarx — sebi:QJA/GG/WRO/WRO/22284/2022-23. 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.