sebi:WTM/AB/SRO/SRO/16308/2022-23
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Facts / Headnote
Noticees held liable for unregistered investment advisory activities and fraudulent/unfair trade practices; directed to refund Rs. 87,72,284/- to investors, debarred from securities market for 6 months (or until refunds completed, whichever is later), and prohibited from acting as investment advisers without registration.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
- s. 27
- s. 179
Regulations
- Reg. 3
- Reg. 4(a)
- Reg. 4(1)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
- Reg. 4(2)(k)
Parties
- Fortunescript Services Private Limited
- Mr. Mithilesh Narayan
- Mr. Shiba Shankar Das
- Mr. Dilip Kumar Rajak
Holding
Fortunescript Services Private Limited and its three directors were found to have violated Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013 by acting as and holding themselves out as investment advisers without registration, and to have violated Regulation 4(2)(k) of the PFUTP Regulations, 2003 by disseminating false and misleading information to induce investors. The Noticees were directed to refund Rs. 87,72,284/- collected from investors, debarred from the securities market for 6 months, and permanently barred from investment advisory activity without registration.
Full text
Final Order in the matter of Fortunescript Services Private Limited Page 1 of 24 WTM/AB/SRO/SRO/16308/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA
Final Order in the matter of Fortunescript Services Private Limited Page 2 of 24 SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003). By the interim order, inter alia following directions were issued to the Noticees:-
Final Order in the matter of Fortunescript Services Private Limited Page 3 of 24 2. The interim order was also in the nature of a show cause notice asking the Noticees to show cause as to why appropriate directions, under Sections 11, 11(4), 11B(1) and 11D of the SEBI Act, 1992 and relevant SEBI Rules/Regulations, including directions for an appropriate period prohibiting them from buying, selling or otherwise dealing in securities market, either directly or indirectly, in any manner whatsoever, for a particular period,
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Source: SecMarx — sebi:WTM/AB/SRO/SRO/16308/2022-23. 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.