sebi:WTM/AB/WRO/ILO/11/2021-22

SEBI · SEBI · 2021-02-08 · 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

Found Noticees acted as unregistered investment adviser in violation of securities laws; in supersession of interim order dated July 16, 2020 directed refund of fees within three months with public notice and CA-certified compliance report, restraint on asset disposal and bank debits except for refunds, and debarment from securities market and association with listed companies/intermediaries for 2 years or till 2 years after completion of refunds, whichever is later.

Provisions invoked

• s. 19
• s. 12(1)
• s. 12A
• s. 28A

Regulations

• Reg. 11
• Reg. 2(1)(c)
• Reg. 4(1)
• Reg. 2
• Reg. 3(1)
• Reg. 2(m)
• Reg. 3(d)
• Reg. 4(2)(k)
• Reg. 2(l)

Parties

• M/s Wildstock
• Mr. Sanjeev Singh

Holding

M/s Wildstock and its sole proprietor Mr. Sanjeev Singh were held to have acted and held themselves out as investment advisers without registration in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations and to have engaged in fraudulent conduct under the PFUTP Regulations, and were directed to refund fees received and were debarred from the securities market for two years.

Full text

Final Order in the matter of M/s Wildstock (Proprietor: Mr. Sanjeev Singh) Page 2 of 19 a) 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. b) Not to divert any funds collected from investors, kept in bank account(s) and/or in their custody until further orders. c) 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. d) Immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications etc., in relation to their investment advisory activity or any other unregistered activity in the securities market until further orders. e) Not to access the securities market and buy, sell or otherwise deal in securities in any manner whatsoever, directly or indirectly, until further orders. f) If M/s Wild Stock or its Sole Proprietor, Mr. Sanjeev Singh has any open positions in any exchange traded derivative contracts, as on the date of the order, they can close out/ square off such open positions within 3 months from the date o

Final Order in the matter of M/s Wildstock (Proprietor: Mr. Sanjeev Singh) Page 3 of 19 h) The Depositories are directed to ensure that till further directions no debits and credits are made in the demat accounts of M/s Wild Stock and its Sole Proprietor, Mr. Sanjeev Singh. i) Banks, including Axis Bank, HDFC Bank, State Bank of India and Bank of India, wherein bank accounts are held in the name of Mr. Sanjeev Singh/ Ms Wild Stock, are directed not to allow any debits/ withdrawals from and credits to the said accounts, without the permission of SEBI. The Banks are directed to ensure that all the above directions are strictly enforced. j) The Registrar and Transfer Agents are also directed to ensure that till further directions the securities, including Mutual Fund units, held in the name of M/s Wild Stock and its Sole Proprietor, Mr. Sanjeev Singh are not transferred or redeemed.”

Final Order in the matter of M/s Wildstock (Proprietor: Mr. Sanjeev Singh) Page 4 of 19 companies which were in compliance with SEBI laws. g. No SEBI official had ever carried out any inspection in his premises or taken any action against him. h. The bank transactions mentioned in the interim order does not tally with the Noitcees’ actual bank transactions. The transactions in the Noticees’ accounts amount to less than Rs. 20 lakhs and most of it is between the Noticees’ different accounts and thus appear large. i. The Noticees are undergoing great hardship due to their bank accounts being frozen during the pandemic.

Source: SecMarx — sebi:WTM/AB/WRO/ILO/11/2021-22. 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.