sebi:WTM/AB/WRO/WRO/20743/2022-23
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Facts / Headnote
Violation established; Noticees directed jointly and severally to refund fees, publish refund notice, face asset-sale restraint and 6-month debarment from securities market.
Provisions invoked
- s. 19
- s. 12(1)
Regulations
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- M/s Capital Mars
- Shri Santosh Patidar
Holding
M/s Capital Mars and its proprietor Shri Santosh Patidar acted as unregistered investment advisers in violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations, 2013, and were directed to refund collected fees and remain debarred from the securities market for 6 months.
Full text
Final Order in the matter of M/s Capital Mars and Anr. Page 1 of 13 WTM/AB/WRO/WRO/20743/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA
Final Order in the matter of M/s Capital Mars and Anr. Page 2 of 13 i. SEBI came across a website, www.capitalmars.com through which ‘M/s. Capital Mars, proprietor - Shri Santosh Patidar - PAN: APRPP1496H was providing various financial products/services to the general public and was charging fees in lieu of the financial services. Thereafter, SEBI had sent two letters dated December 26, 2014 and February 03, 2015 to the Noticees at the address “425, 4th floor, orbit mall, Indore, Madhya Pradesh- 452001”. The said letters were sent to the Noticees, seeking the comments from the Noticees with respect to the financial products/services in the nature of investment advisory services provided to the general public and charging fees for such activities without taking necessary approval from SEBI. ii. The SEBI examination noted that the website of the Noticees i.e. www. capitalmars.com was not active. The screenshots of the webpage www.capitalmars.com taken on December 17, 2014 and December 26, 2014 and the archive pages of the website www.capitalmars.com dated January 13, 2014, January 14, 2014 and June 14, 2014, were downloaded from web.archive.org. iii. The website of the Noticees disclosed that Noticees were providing investment advisory services. The payment tab of website also disclosed payment details of ICICI Bank and HDFC Bank accounts, in which multiple credit transactions from various entities have been received. Further, from the details of narration mentioned in the tra
Final Order in the matter of M/s Capital Mars and Anr. Page 3 of 13 said date the Noticees failed to appear, nor did they seek any adjournment to the hearing. In view of the same the hearing was concluded qua the Noticees.
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Source: SecMarx — sebi:WTM/AB/WRO/WRO/20743/2022-23. 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.