sebi:RA/DPS/60/2016
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Facts / Headnote
Penalty of Rs. 75,00,000 imposed under Section 15HB of SEBI Act
Provisions invoked
- s. 15
- s. 12(1)
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 3(1)
- Reg. 1(2)
Parties
- M/s Capvision investment advisor
Holding
The Noticee violated section 12(1) of the SEBI Act read with regulation 3(1) of the IA Regulations by providing investment advisory services without registration, and a monetary penalty of Rs. 75,00,000 was imposed under section 15HB.
Full text
Page 2 of 17 not informed SEBI about its ICICI Bank account nor submitted any certificate stating that the said account is blocked or about nil transactions. It is alleged that the Noticee while submitting his application for registration, submitted CA certificate mentioning HDFC account only. It is also observed that while perusing client-wise payment details submitted by the Noticee it is observed that many payments are received in ICICI bank account No. 144105000618 of the Noticee during April 17, 2014 (date of submitting declaration) till June 11, 2014 (registration date). Thus it is alleged that the Noticee was providing advisory services when its registration was pending with SEBI and such act of Noticee is in violation of section 12(1) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act') read with regulation 3(1) of SEBI (Investment Advisors) Regulations, 2013 (hereinafter referred to as ‘IA Regulations’). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 17 related activities till it gets registration from SEBI. Further it is alleged that the Noticee only informed about its HDFC bank account is blocked on April 17, 2014. However the Noticee did not informed SEBI about its ICICI Bank account nor submitted any certificate stating that the said account is blocked or about nil transactions. It is alleged that the Noticee while submitting his application for registration, submitted CA certificate mentioning HDFC account only. It is also observed that while perusing client-wise payment details submitted by the Noticee it is observed that many payments are received in ICICI bank account No. 144105000618 of the Noticee during April 17, 2014 (date of submitting declaration) till June 11, 2014 (registration date).
Page 4 of 17 8. In order to conduct an inquiry in terms of rule 4(3) of the Adjudication Rules, the Noticee was granted an opportunity of personal hearing on August 30, 2016 vide notice dated August 10, 2016. Noticeevide email dated August 24, 2016 confirmed its presence for hearing however vide email dated August 30, 2016 requested for next date for hearing. As per its request, second and final opportunity of hearing was granted to the Noticee on September 14, 2016 and Hearing was attended by the authorized representative (AR) of the Noticee – Shri Ravi Prakash Mishra. The submission made by the Noticee during the course of hearing were recorded and the noticeereiterated the submissions as made in its reply dated August 24, 2015.
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Source: SecMarx — sebi:RA/DPS/60/2016. 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.