sebi:WTM/AB/SRO/SRO/17854/2022-23
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Facts / Headnote
Directions issued: refund of Rs. 10,52,100/- jointly and severally within 3 months, public notice, restraint on asset sale, debarment of Noticees 1, 4, 5, 6 and 7 for 6 months, debarment of Noticees 2 and 3 for 1 year, and prohibition on undertaking investment advisory activities without SEBI registration.
Provisions invoked
- s. 19
- s. 12(1)
- s. 27
- s. 25
Regulations
- Reg. 3
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- M/s. Trend Market Advisory Services (AAFFT3503J)
- Mr. C. Muralitharan (AFKPC7801E)
- Mr. C. Paranitharan (APWPP4519C)
- Mr. NSK Chithanathan (ABJPC3376P)
- Mr. C. Senthilnathan (BAFPS0502P)
- Mr. C Vijai (PAN not available)
- Ms. S. Kokila (PAN not available)
Holding
TMAS and all its partners were found to have violated Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013 by providing investment advisory services without registration. All seven Noticees, as partners of the firm, were held jointly and severally liable for the unregistered investment advisory activities.
Full text
Final Order in the matter of Trend Market Advisory Services Page 1 of 19 WTM/AB/SRO/SRO/17854/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA
Final Order in the matter of Trend Market Advisory Services Page 2 of 19 (i) SEBI received a reference dated 13.06.2019 from S Jansirani against Trend Market Advisory Services alleging that they have provided investment advice without the registration. (ii) As per the reconstitution of partnership deed of M/s Trend Market Advisory Services dated 03.04.2010, KYC documents of M/s Trend Market Advisory Services submitted by HDFC Bank, ICICI Bank and Axis Bank the following were noted: i. Trend Market Advisory Services (PAN: AAFFT3503J) is a partnership firm and incorporated on 20.04.2008. The address is No. 683, PTN. Complex, 2nd floor, Madurai Road, Tirumangalam. The contact numbers are 9880393384, 04549283939, 04549280686, 9843737855. ii. First Partner is Shri N.S.K. Chithanathan (PAN: ABJPC3376P) S/o Shri N.S. Kandasamy Thevar with the profit / loss sharing percentage of 5%. The address is 20/22, Muthalamman Kovil Street, Thirumangalam. The email id is muralitharan@gmail.com iii. Second Partner is Shri C. Paranitharan (PAN: AFKPC7801E) S/o Shri N.S.K. Chithanathan with the profit / loss sharing percentage of 25%. The address is No. 20/22, Muthalamman Kovil Street, Thirumangalam. iv. Third Partner is Shri C. Senthilnathan (PAN: BAFPS0502P) S/o Shri N.S.K. Chithanathan with the profit / loss sharing percentage of 2.5%. The address is No. 20/22, Muthalamman Kovil Street, Thirumangalam. v. Fourth Partner is Shri C. Muralitharan (PAN: AFKPC7801E) S/o Shri N.S.K. Chithanathan with
Final Order in the matter of Trend Market Advisory Services Page 3 of 19 vii. Sixth Partner is Smt. S Kokila, (PAN: not available) W/o Shri G. Sankaran with the profit / loss sharing percentage of 2.5%. The address is 91/79, Virudhunagar Road, Thirumangalam, Madurai. viii. First and second partners were carrying out the business under the name and style of Trend Market Advisory Services vide partnership deed dated 18.04.2008. First and second partners have decided to admit third, fourth, fifth and sixth partners in the firm. ix. Bank accounts or accounts shall be opened in the name of the firm and shall be operated by C. Paranitharan and C. Muralitharan. x. Any death or retirement of the partners, the firm shall not be dissolved. The firm shall be continued by admitting the legal heirs of the deceased partner. xi. The provisions of the Indian Partnership Act, 1932 shall apply in respect of terms and conditions not specifically contained in this instrument. xii. Shri N.S.K. Chithanathan is the authorized signatory and person authorized to operate the bank account of ICICI bank. xiii. Shri C Paranitharan and Shri C Muralitharan are the authorized signatories and persons authorized to operate the bank account of Axis bank. xiv. Shri C. Paranitharan, Shri C. Muralitharan and Shri N.S.K. Chithanathan are the authorized signatories and persons authorized to operate the bank account of HDFC bank.
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Source: SecMarx — sebi:WTM/AB/SRO/SRO/17854/2022-23. 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.