sebi:WTM/AB/SRO/SRO/15732/2021-22

SEBI · SEBI · 2020-12-15 · Ananta Barua, Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Noticees held to be unregistered investment advisers in violation of Section 12(1) SEBI Act and Regulation 3(1) IA Regulations; directed to jointly and severally refund Rs. 2,58,05,574 within three months with public notice, and debarred from securities market for 6 months.

Provisions invoked

• s. 19
• s. 12(1)

Regulations

• Reg. 2(1)(l)
• Reg. 3(1)
• Reg. 2(1)(m)

Parties

• M/s VRP Capital & Derivative Market Services
• Mr. Vaibhav Ramchandra Patil

Holding

VRP Capital and its proprietor acted as investment advisers without SEBI registration in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations, and were directed to refund Rs. 2,58,05,574 and remain debarred from the securities market for 6 months.

Full text

Final Order in the matter of VRP Capital & Derivative Market Services (Prop. Mr. Vaibhav R Patil) Page 1 of 16 WTM/AB/SRO/SRO/15732/2021-22

Final Order in the matter of VRP Capital & Derivative Market Services (Prop. Mr. Vaibhav R Patil) Page 2 of 16  “Cease and desist from acting as an investment advisor including the activity of acting and representing through any media (physical or digital) as an investment advisor, directly or indirectly, and cease to solicit or undertake such activity or any other activities in the securities market, directly or indirectly, in any matter whatsoever, until further orders.  Not to divert any funds raised from investors, kept in bank account(s) and/or in their custody until further orders.  Not to dispose of or alienate any assets, whether movable or immovable, or any interest or investment or charge on any of such assets held in their name, including money lying in bank accounts except with the prior permission of SEBI.  Immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications etc., physical or digital in relation to their investment advisory activity or any other unregistered activity in the securities market until further orders.  Not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders.  To provide a full inventory of all assets held in their name, whether movable or immovable, or any interest or investment or charge on any of such assets, including details of all bank accounts, demat acc

Final Order in the matter of VRP Capital & Derivative Market Services (Prop. Mr. Vaibhav R Patil) Page 3 of 16 and relevant SEBI Rules/Regulations, including directions to prohibit them from buying, selling or otherwise dealing in securities market, either directly or indirectly, in any manner whatsoever, for a particular period and not to be associated with any listed public company and any public company which intends to raise money from the public, or any intermediary registered with SEBI for a particular period and to refund the fees collected from the investors/clients for its unregistered IA activities.

Source: SecMarx — sebi:WTM/AB/SRO/SRO/15732/2021-22. 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.