sebi:RA/CB/88/2017

SEBI · SEBI · 2016-06-16 · Rachna Anand, General Manager and Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 26,00,000 imposed on the Noticee under Section 15HB of the SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15I
• s. 15J

Parties

• Mr. Ankitkumar S Singhania

Holding

The Noticee failed to comply with and circumvented SEBI Order dated December 30, 2015 by indirectly running unregistered investment advisory through Bear and Bulls under SMSPL, violating Section 15HB of the SEBI Act, and a penalty of Rs. 26,00,000 was imposed.

Full text

Adjudication Order in the matter of Bear and Bulls Page 2 of 9 Adjudication Rules wherein he was called upon to show cause as to why an inquiry should not be held against him in terms of Rule 4 of the Adjudication Rules read with Section 15I of the SEBI Act and why penalty should not be imposed on him under Section 15HB of the SEBI Act for the aforesaid non-compliance of directions passed under the SEBI order dated December 30, 2015.

Adjudication Order in the matter of Bear and Bulls Page 3 of 9 April 10, 2017 and April 18, 2017, was instructed to submit its reply to the SCN first in

Adjudication Order in the matter of Bear and Bulls Page 4 of 9 attended by the Noticee, his Chartered Accountant, Mr. Vikash Agrawal and his Manager, Mr. Hasan Abbas. At the hearing, the Noticee had submitted as follows: “ a. That he was not aware about SEBI (Investment Advisers) Regulations, 2013 being in force when he started his business as proprietor of GoCapital. Also, the Noticee was not aware about the process of registration as an investment adviser. When the Order dated December 30, 2015 was passed, he was not aware if he was barred from acting as investment adviser. b. That investment advisory activities previously conducted by GoCapital were stopped after passage of Order dated December 30, 2015. c. That SMSPL, being a company, is a separate legal entity and Bears and Bulls is a venture of SMSPL which was started in March 2016. d. That the Order dated December 30, 2015 was passed against the Noticee and not against the SMSPL. e. That investment advisory activities after December 30, 2015 were conducted by Bears and Bulls.”

Source: SecMarx — sebi:RA/CB/88/2017. 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.