sebi:QJA/PR/WRO/WRO/22160/2022-23
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violations of IA Regulations, Code of Conduct, RA Regulations and AML circulars largely established and directions issued; allegation of charging arbitrary fees disposed of for lack of corroboration
Provisions invoked
- s. 19
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 15J
- s. 15F
- s. 15E
- s. 30(1)
Regulations
- Reg. 7
- Reg. 3
- Reg. 7(1)
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 16
- Reg. 15
- Reg. 3(a)
- Reg. 7(2)
- Reg. 19
- Reg. 28
- Reg. 19(1)
- Reg. 15(9)
- Reg. 13(b)
- Reg. 16(b)
- Reg. 17(a)
- Reg. 35
- Reg. 16(d)(i)
- Reg. 16(e)
- Reg. 19(1)(e)
Parties
- Capitalstars Financial Research Private Limited
- Amit Sharma
Holding
Noticee No.1 violated regulations 16(a), (b), (d), (e), 17(a), 19 and Code of Conduct read with regulation 15(9) and related RA and AML requirements, warranting directions including AML/PMLA policy update and appointment of Designated Director; the allegation of charging arbitrary fees was disposed of for want of corroborating material.
Full text
Order in the matter of Capitalstars Financial Research Private Limited Page 2 of 41 period”) in order to examine the compliance of various requirements under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “the SEBI Act”), Regulations, and circulars/
Order in the matter of Capitalstars Financial Research Private Limited Page 3 of 41 e) Noticee no. 1 has failed to do risk profiling for 3 (three) clients out of a sample of 40 (forty) clients, Noticee no. 1 has collected advisory fees from 22 clients, before carrying out risk profiling of the clients, in alleged violation of regulation 17(a) of the IA Regulations;
Order in the matter of Capitalstars Financial Research Private Limited Page 4 of 41 5. From perusal of the records available, I note that the SCN was issued to the Noticees through Speed Post Acknowledgment Due. The details of the delivery of the said SCN to the Noticees is tabulated herein below: Table No. 1 Noticee No. Name Of the Noticees Delivery of SCN Reply, if any
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Source: SecMarx — sebi:QJA/PR/WRO/WRO/22160/2022-23. 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.