sebi:WTM/AB/WRO/WRO/14833/2021-22

SEBI · SEBI · 2021-09-14 · 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

Partially sustained: allegations of violations of IA Regulations 2013 sustained (risk profiling policy, document maintenance, manipulation of records, employee certification, upfront fees/no refund policy); allegations of offering assured returns and violations of SEBI Act s.12A and PFUTP Regulations 2003 not sustained. Noticee restrained from securities market for one year (with set-off for period already undergone), directed to resolve SCORES complaints, and asset restraint discontinued.

Provisions invoked

• s. 19
• s. 12A

Regulations

• Reg. 7
• Reg. 4
• Reg. 3
• Reg. 2(1)(c)
• Reg. 16
• Reg. 2(1)
• Reg. 17
• Reg. 15
• Reg. 3(a)
• Reg. 15(1)
• Reg. 7(2)
• Reg. 19
• Reg. 19(1)
• Reg. 15(9)
• Reg. 15(13)
• Reg. 16(b)
• Reg. 35
• Reg. 2(1)(r)
• Reg. 16(a)
• Reg. 17(b)

Parties

• GRS Solution (Prop.: Mr. Nilesh Vispute)

Holding

The Noticee (GRS Solution and its proprietor) was found to have violated IA Regulations, 2013 (Regulation 15(1), 15(9) with Code of Conduct Clauses 1 and 8, Regulation 16(b), 17(b), Regulation 7(2) read with 15(13)) for failure to maintain documents, manipulation of risk profiling forms and invoices, unqualified employees rendering advice, and lack of refund policy locking in clients; however, allegations of offering assured returns and violations of Section 12A of the SEBI Act and PFUTP Regulations, 2003 were not sustained.

Full text

Final Order in the matter of the GRS Solution (Prop.: Mr. Nilesh Vispute) Page 1 of 27 WTM/AB/WRO/WRO/14833/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA

Final Order in the matter of the GRS Solution (Prop.: Mr. Nilesh Vispute) Page 2 of 27 of the inspection / information provided and submission made by GRS, SEBI prima facie found the following:

Final Order in the matter of the GRS Solution (Prop.: Mr. Nilesh Vispute) Page 3 of 27 (c) not to divert any funds raised from investors, kept in bank account(s) and/or in their custody; (d) 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 accounts and mutual fund investments, immediately but not later than 5 working days from the date of receipt of this order; (e) 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; (f) to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, communications etc., in digital mode or otherwise, in relation to its investment advisory activity or any other activity in the securities market; (g) to remove all contents from website immediately and display only the content in its website that SEBI has passed Order-cum-SCN dated January 06, 2021 reproducing the

Source: SecMarx — sebi:WTM/AB/WRO/WRO/14833/2021-22. 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.