sebi:WTM/AN/WRO/WRO/27898/2023-24
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Cancellation of certificate of registration No. INA000003346
Provisions invoked
- s. 12(1)
- s. 12A
- s. 12
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 9
- Reg. 2
- Reg. 3(a)
- Reg. 13(a)
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
- Reg. 3(2)
- Reg. 27
- Reg. 27(5)
- Reg. 15(9)
- Reg. 2(1)(b)
- Reg. 6(f)
Parties
- Mr. Hariom Sharan Patel, Proprietor of BIS Capital Investment Advisor
Holding
The certificate of registration granted to Mr. Hariom Sharan Patel, Proprietor of BIS Capital Investment Advisor (INA000003346) is cancelled for providing unregistered investment advice through Bourse India Investment Advisor, concealing that fact in the registration application, and violating IA and PFUTP Regulations.
Full text
Order in respect Mr. Hariom Sharan Patel, Proprietor of BIS Capital Investment Advisor Page 2 of 25 3. After examination, action was approved by the competent authority to initiate proceedings under: (i) sections 11, 11B read with sections 15HA and 15HB of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”); and (ii) Chapter V of the SEBI (Intermediaries) Regulations, 2008 (“Intermediaries Regulations”) against the Noticee. The present order pertains to the enquiry proceedings initiated under the Intermediaries Regulations against the Noticee. Consequent to the approval of enquiry proceedings, a designated authority (“DA”) was appointed. Thereafter, the DA issued a show cause notice (“SCN”) dated July 29, 2022 to the Noticee. Hearing opportunities were given to the Noticee vide hearing notice sent by email dated October 02, 2022 and October 06, 2022. However, the Noticee did not appear before the DA. Since sufficient opportunities were granted to the Noticee, the DA proceeded based on the material available before it. In the report dated October 19, 2022 (“DA Report”), the DA has observed that the Noticee while applying to SEBI for certification of registration as an IA deliberately concealed the fact that it was engaged in unregistered investment advisory services prior to applying to SEBI for registration. Consequently, the DA observed that the Noticee has committed the following violations and has recommended cancellation of his registration:
Order in respect Mr. Hariom Sharan Patel, Proprietor of BIS Capital Investment Advisor Page 3 of 25 5. I note that the DA has relied on the following information/documents as evidence to arrive at a conclusion that Noticee has violated provisions of SEBI Act, IA Regulations and PFUTP Regulations as stated in paragraph 3(i) and (ii) above: (i) Letter submitted by Noticee to SEBI dated July 09, 2015; (ii) SCORES Complaint; (iii) Website of Bourse India Investment Advisor (www.bourseindia.com); (iv) Information received from EBS Payment Gateway; (v) KYC details obtained from ICICI Bank Ltd. with respect to account no. ending with 0399 and 0424; (vi) Bank details obtained from State Bank of India (SBI) with respect to account no. ending with 2040.
Order in respect Mr. Hariom Sharan Patel, Proprietor of BIS Capital Investment Advisor Page 4 of 25 5.3.2 As per “Whois” report retrieved from the website www.domainbigdata.com, the creation date for www.bourseindia.com was March 09, 2014. The archived pages of the website were downloaded from www.webarchive.org to gather information regarding the website. The website inter alia stated the following:
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/AN/WRO/WRO/27898/2023-24. 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.