sebi:WTM/AB/WRO/WRO/18675/2022-23
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Facts / Headnote
Noticee held to be an unregistered investment adviser; directed jointly and severally to refund fees/consideration to complainants/investors within 3 months with public notice and CA-certified compliance report, with asset/bank restraint for purpose of refunds, and debarred from securities market for 6 months or till 6 months after completion of refunds, whichever is later.
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- Mr. Umesh Malviya, Proprietor: RMG Research/ RMG Trading
Holding
The Noticee acted as an investment adviser without SEBI registration in violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013. The Noticee was directed to refund advisory fees/consideration and was debarred from the securities market as specified.
Full text
Final Order in the matter of Mr. Umesh Malviya, Proprietor: RMG Research/ RMG Trading Page 1 of 14 WTM/AB/WRO/WRO/18675/2022-23
Final Order in the matter of Mr. Umesh Malviya, Proprietor: RMG Research/ RMG Trading Page 2 of 14 RMG Research/RMG Trading (hereinafter referred to as “RMG Research”) and proprietor Shri. Umesh Malviya (RMG Research/ RMG Trading and Shri. Umesh Malviya hereinafter collectively referred to as the ‘Noticee’). ii. Vide email dated August 6, 2019, the complainant had, inter alia, alleged the following: - The complainant had received a call from one Ms. Kamini Sharma, who introduced herself as an agent of RMG Research, an Indore based share market research company and told the complainant to start investing with it in the securities market. - The complainant started doing so and opened a demat account with Choice Broking in Mumbai. The complainant was asked to pay Rs. 11,000 for KYC process. The complainant paid the said amount after which he was allotted a Portfolio Manager whose name was RAJAN/ Rajinder Kumar. - Mr. Rajan explained to the complainant about the securities market and convinced him to take a plan of 1.75 Lakh. He promised the complainant to quadruple the amount in the demat within 45 days or earlier. - After being convinced, the complainant transferred Rs. 1.75 Lakh in parts for services of RMG Research and put Rs. 2.50 Lakh purportedly in the demat account. The complainant was informed about his holding position in Gold. - However, the complainant never saw any such transaction in his demat account. Further, thereafter, the complainant was informed that he had in
Final Order in the matter of Mr. Umesh Malviya, Proprietor: RMG Research/ RMG Trading Page 3 of 14 iv. The complainant alleged that he had received investment advisory services from RMG Research and made payments through Easebuzz payment gateway provided by the representative of RMG Research. The website of the RMG Research/ RMG Trading disclosed that it was providing investment advisory services. Further, from the email correspondences and WhatsApp chats between the complainant and the representative of RMG Research, it was prima facie observed that the website is providing investment advisory services. v. The Easebuzz payment gateway and ICICI bank Account, as informed by the complainant wherein consideration / advisory fees were paid, have multiple credit transactions from various entities. Hence, it was inferred that the said Bank accounts and Easebuzz payment gateway were used for receipt of fees from various entities for the purpose of providing advisory services.
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Source: SecMarx — sebi:WTM/AB/WRO/WRO/18675/2022-23. 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.