sebi:WTM/AB/WRO/WRO/23923/2022-23
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Facts / Headnote
Noticees held liable for unregistered investment advice and fraud; directed to refund Rs. 1,06,51,838.10 within 3 months, deposit balance with SEBI in escrow, debarred from securities market for 6 months, and imposed monetary penalties totaling Rs. 8,00,000.
Provisions invoked
- s. 19
- s. 12(1)
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 15J
- s. 15F
- s. 15E
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 3(a)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- M/s. RB Traders
- Raj Bhadur Bhdoriya
Holding
SEBI held that M/s. RB Traders through its proprietor acted as an unregistered investment adviser and engaged in fraud, and directed refund of Rs. 1,06,51,838.10 to clients/investors, 6-month debarment, and penalties of Rs. 5,00,000 under Section 15HA and Rs. 3,00,000 under Sections 15HB/15EB.
Full text
Final Order in the matter of M/s. RB Traders, prop. Raj Bhadur Bhdoriya Page 2 of 18 2. The facts of the case, as mentioned in the SCN, are as follows: a. SEBI had received a complaint on May 13, 2019 alleging that the Noticee was using SEBI registration no. INA000001126 for providing advisory services. The complainant had paid amount of Rs. 70,000 to the Noticees. Employees of the Noticees traded in the demat account of the complainant and incurred huge losses of Rs. 2,00,000.
Final Order in the matter of M/s. RB Traders, prop. Raj Bhadur Bhdoriya Page 3 of 18 received from Andhra Bank, it was observed that the bank account of RB Traders (a/c no. 220411100000265) was credited with total amount of Rs. 32,97,941.2 through Easebuzz and the total credit in the account from the date of opening of account, i.e. September 12, 2014 to December 09, 2019 was Rs. 88,98,228.79. Credit entries for the money paid by the complainants through Easebuzz were also seen in the said bank account statement. Further, it was noticed that funds from the Andhra Bank account (a/c no. 220411100000265) were transferred to another account (a/c no. 656805600343) of the Noticees, held with ICICI Bank. KYC details, account opening form and bank account statement were sought from ICICI Bank. From the information received from ICICI Bank, it was observed that Rs. 42,72,356.31 were credited to the said account of RB Traders from July 02, 2018 to January 22, 2020.
Final Order in the matter of M/s. RB Traders, prop. Raj Bhadur Bhdoriya Page 4 of 18 with Sections 12A(a), (b) and (c) of SEBI Act, 1992.
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Source: SecMarx — sebi:WTM/AB/WRO/WRO/23923/2022-23. 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.