sebi:WTM/AB/WRO/WRO/25160/2022-23
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Facts / Headnote
Noticees held to have acted as unregistered investment adviser, research analyst and portfolio manager and to have committed fraud; directed to refund fees collected within three months, deposit balance with SEBI in escrow, restrained from dealing in securities and selling assets except for refunds, debarred from securities market for 1 year, and imposed joint and several monetary penalty of Rs. 5,00,000 under Section 15HA.
Provisions invoked
- s. 19
- s. 12(1)
- s. 11B
- s. 12A
- s. 12
- s. 11
- s. 15H
- s. 15I
- s. 15J
- s. 15F
Regulations
- Reg. 2(c)
- Reg. 3
- Reg. 4
- Reg. 2
- Reg. 3(a)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
- Reg. 3(d)
- Reg. 4(2)(s)
- Reg. 2(1)(u)
- Reg. 42
Parties
- Premium Research Financial Services
- Premium Capital Services
- Mr. Jeevan Lal Maru
Holding
The Noticees acted as unregistered investment adviser, research analyst and portfolio manager in violation of Section 12(1) of SEBI Act, 1992 and registration provisions, and committed fraud by promising assured returns and misrepresenting registration, and were therefore liable for refund, debarment and penalty under Section 15HA.
Full text
Final Order in the matter of Premium Research Financial Services and Premium Capital Services Page 2 of 29 Regulations, 2013 (hereinafter referred to as “IA Regulations, 2013”). It was also prima facie found that the Noticees were was engaged in research analyst services without obtaining a certificate of registration from SEBI in violation of the provisions of Section 12(1) of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”) and Regulation 3(1) of SEBI (Research Analysts) Regulations, 2014 (hereinafter referred to as “RA Regulations, 2013”). The SCN 2 alleged that Premium Research Financial Services had also indulged in unregistered portfolio management service activity in violation of Section 12(1) of SEBI Act 1992, read with Regulation 3 of SEBI (Portfolio Managers) Regulations, 1993 (hereinafter referred to as “PM Regulations, 1993”), read with Regulation 42 of the SEBI (Portfolio Managers) Regulations, 2020. SCN 2 also alleged that Premium Research Financial Services had violated Regulations 3(a), (b), (c) and (d) and 4(2)(s)(i) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred as “PFUTP Regulations, 2003”) read with section 12A (a), (b) and (c) of SEBI Act, 1992. SCN 1 and SCN 2 are hereinafter collectively referred to as “SCNs”.
Final Order in the matter of Premium Research Financial Services and Premium Capital Services Page 3 of 29 vi. Directed 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 his name or his proprietary firm’s name i.e., Premium Research Financial Services and Premium Capital Services, including money lying in bank accounts except with the prior permission of SEBI. b. Banks, including, Axis Bank, ICICI Bank and IndusInd Bank wherein M/s. Premium Research Financial Services and M/s Premium Capital Services and their proprietor viz., Mr. Jeevan Lal Maru (PAN: AXUPM0503H) are holding bank accounts, are directed not to allow any debits/ withdrawals from and credits to the said accounts, without the permission of SEBI. The Banks are also directed to ensure that all the above directions are strictly enforced. c. Depositories are directed to ensure that till further directions no debits are made in the demat accounts, of Mr. Jeevan Lal Maru (PAN: AXUPM0503H), proprietor of Premium Research Financial Services and Premium Capital Services, held jointly or solely. d. Registrar and Transfer Agents are also directed to ensure that till further directions the securities / units held in the name of Mr. Jeevan Lal Maru, jointly or severally, are not transferred / redeemed.”
Final Order in the matter of Premium Research Financial Services and Premium Capital Services Page 4 of 29 read with Section 15I of the SEBI Act, 1992 and the subsequent imposition of
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Source: SecMarx — sebi:WTM/AB/WRO/WRO/25160/2022-23. 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.