sebi:WTM/AN/NRO/NRO/27304/2023-24
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Facts / Headnote
Prima facie finding of unregistered investment advisory activity; Noticees restrained from buying, selling or dealing in securities, directed to cease and desist from acting as investment adviser, to impound INR 12,84,74,628.50 jointly and severally in interest-bearing escrow within 15 days, with debit freeze on bank/demat accounts, bar on asset alienation/diversion and on transfer/redemption of securities/mutual funds, and direction to furnish full asset inventory, pending further examination/investigation.
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)
- Reg. 3(1)
- Reg. 2(1)(l)
Parties
- Kabir Financial Services Pvt. Ltd.
- Sayyed Shujauddin
- Farhat Perween
Holding
SEBI prima facie held Kabir Financial Services Pvt. Ltd. and its directors Sayyed Shujauddin and Farhat Perween acted as unregistered investment advisers in violation of the SEBI Act, IA Regulations and PFUTP Regulations, and issued interim ex-parte directions restraining securities market activity and impounding alleged illegal gains of INR 12,84,74,628.50.
Full text
Page 2 of 23 (c) That Sayyed has a company, namely, Kabir Financial Services Pvt. Ltd. (“company”), “to fool innocent citizens and to manage other people’s accounts and provide stock market tips.” (d) That Sayyed has “duped thousands of members for crores of rupees.”
Page 3 of 23 Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control. 12A. No person shall directly or indirectly - (a) use or employ, in connection with the issue, purchase or sale of any securities listed or proposed to be listed on a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of this Act or the rules or the regulations made thereunder; (b) employ any device, scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognised stock exchange; (c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognised stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder;
Page 4 of 23 Application for grant of certificate. 3. (1) On and from the commencement of these regulations, no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board under these regulations:
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Source: SecMarx — sebi:WTM/AN/NRO/NRO/27304/2023-24. 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.