sebi:WTM/AB/SRO/SRO/24398/2022-23
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Facts / Headnote
Noticee found in violation of Section 12(1) of SEBI Act, 1992 read with Regulation 3(1) of IA Regulations, 2013; directed to refund Rs. 1,76,31,859 received from investors, deposit balance with SEBI in escrow, debarred from securities market for 6 months, and restrained from undertaking investment advisory activities without registration.
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 3
- Reg. 2(1)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- Mr. Pranay Kumar, Proprietor of M/s. Capital Gyan
Holding
The Noticee was acting as an investment adviser without obtaining a certificate of registration from SEBI, in violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013. Directions were issued for refund of money received, deposit of balance with SEBI, debarment from the securities market for 6 months, and prohibition on undertaking investment advisory activities without registration.
Full text
Final Order in the matter of Mr. Pranay Kumar, Proprietor of M/s. Capital Gyan Page 2 of 16 2. The facts of the case, as mentioned in the SCN, are the following:
Final Order in the matter of Mr. Pranay Kumar, Proprietor of M/s. Capital Gyan Page 3 of 16 (vi) The complainant has stated that he had paid money to the Noticee through online payment gateway Easebuzz and the same is reflected in the statement provided by Easebuzz. (vii) In view of the above, it was alleged that the Noticee was engaged in the activities of an ‘investment adviser’ as defined under Regulation 2(1) (m) of the IA Regulations, 2013, without obtaining registration from SEBI, as required under Section 12(1) of SEBI Act, 1992 read with Regulation 3(1) of IA Regulations, 2013, thereby violating the said provisions of the SEBI Act, 1992 and the IA Regulations, 2013. The SCN had thus, called upon the Noticee to show cause as to why suitable directions under Sections 11(1), 11(4), and 11B (1) of the SEBI Act, 1992 should not be issued against him for the alleged violations.
Final Order in the matter of Mr. Pranay Kumar, Proprietor of M/s. Capital Gyan Page 4 of 16 the Noticee provided his current address which was the same Jharkhand address where the SCN had been delivered by Speed Post on the previous occasion. The SCN along with annexure was again sent to the said address and was delivered by Speed Post. However, no further reply to the SCN was received from the Noticee.
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Source: SecMarx — sebi:WTM/AB/SRO/SRO/24398/2022-23. 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.