sebi:QJA/GG/WRO/WRO/27165/2023-24
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Facts / Headnote
Noticee found to have violated multiple provisions of IA Regulations, Code of Conduct, SEBI Act and PFUTP Regulations; penalty determination not stated in the excerpt
Provisions invoked
- s. 19
- s. 12A
- s. 12(3)
Regulations
- Reg. 7
- Reg. 3
- Reg. 9
- Reg. 25
- Reg. 15
- Reg. 21
- Reg. 3(a)
- Reg. 13(a)
- Reg. 23
- Reg. 7(2)
- Reg. 15(1)
- Reg. 15A
- Reg. 3(d)
- Reg. 19(1)
- Reg. 27
- Reg. 27(5)
- Reg. 15(9)
- Reg. 15(13)
- Reg. 16(b)
- Reg. 17(a)
Parties
- Investment Visor - Prop. Praveen Verma
Holding
The Noticee was found to have violated IA Regulations (including regulations 7, 13(a), 15(1), 15(9), 15(13), 16, 24(3), 25(1), 25(2)), the Code of Conduct, and related provisions by failing to cooperate with inspection, offering assured returns, lacking required qualifications, improperly risk-profiling clients, and overcharging fees. The allegation under PFUTP Regulations and Section 12A of the SEBI Act regarding risk profiling was held not substantiated.
Full text
Enquiry Order in respect of Investment Visor- Prop. Praveen Verma Page 2 of 48 February 26, 2020. The Noticee vide email dated February 26, 2020 submitted part reply to the pre-inspection questionnaire but failed to submit information related to write-up on details of advisory services provided, write- up on procedure/process for risk profiling and suitability assessment, rationale for arriving at investment advice duly signed and dated, Audited Financial Statements, etc.
Enquiry Order in respect of Investment Visor- Prop. Praveen Verma Page 3 of 48 March 18, 2020 informed that various data sought by SEBI were attached in the email. It was noted that no such attachments were available in the said email but for the employee data. SEBI vide emails dated August 13, 2020, August 14, 2020 and August 19, 2020 advised the Noticee to furnish the information. However, the Noticee did not provide the required information.
Enquiry Order in respect of Investment Visor- Prop. Praveen Verma Page 4 of 48 same to the clients. However, they did not possess requisite qualification or certification.
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Source: SecMarx — sebi:QJA/GG/WRO/WRO/27165/2023-24. 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.