sebi:QJA/GG/WRO/WRO/23318/2022-23
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Facts / Headnote
Noticee warned to exercise due care and caution while conducting business of Investment Adviser and ensure compliance with applicable rules and regulations; Designated Authority had recommended cancellation of registration INA00003197
Provisions invoked
- s. 11B
- s. 19
- s. 12A
- s. 12(3)
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 9
- Reg. 15
- Reg. 2
- Reg. 21
- Reg. 3(a)
- Reg. 15(1)
- Reg. 27
- Reg. 15(9)
- Reg. 17(a)
- Reg. 13(b)
- Reg. 27(4)
- Reg. 16(a)
- Reg. 17(c)
- Reg. 17(e)
- Reg. 63
Parties
- Star World Research
Holding
The Noticee violated IA Regulations on risk profiling, suitability, fiduciary duty, fair fees and SCORES redressal, but was warned to exercise due care and caution; allegations of assured returns and cash/hawala fee receipt were not established for lack of verifiable proof.
Full text
Order in the matter of Star World Research 2 | 36 appointed a Designated Authority ("DA") to enquire into and recommend whether the alleged violations by the Noticee warranted cancellation or suspension of the certificate of registration granted by SEBI or any other action provided in Chapter V of the Intermediaries Regulations.
Order in the matter of Star World Research 3 | 36 proceedings were held simultaneously. The Noticee filed written submissions dated November 14, 2022. However, in the said letter, only the show cause notice pertaining to the proceedings under Section 11B of the SEBI Act is referred to. However, the allegations are similar and a common hearing was held in both Enquiry and Section 11B matters. Hence, I am inclined to consider the reply of the Noticee before arriving at the findings in the case at hand too. For the sake of brevity, the submissions of the Noticee are not being listed below, and will be taken up issue-wise and dealt with suitably in the later part of this order.
Order in the matter of Star World Research 4 | 36 5. In view of the above, it was alleged that the Noticee has violated the provisions of Regulations 13(b), 15(1), 16 (a) and (b), 17 (a) (c) (d) and (e), 21, 22 (1) of the IA Regulations, Clauses 1, 2, 6, 8 and 9 of Code of Conduct for Investment Advisers as specified in The Third Schedule of IA Regulations read with regulation 15(9) of IA Regulations as well as the provisions of regulation 3 (a) (b) (c) and (d) of PFUTP Regulations read with sections 12(A) (a), (b) and (c) of the SEBI Act, 1992 and clause 1 (iii) of SEBI Circular SEBI/HO/IMD/DF1/CIR/P/2019/169 dated December 27, 2019 and Circular /OIAE/2014 dated December 18, 2014. The relevant extracts of the aforesaid regulations are reproduced below for ease of reference: IA Regulations. Conditions of certificate.
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Source: SecMarx — sebi:QJA/GG/WRO/WRO/23318/2022-23. 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.