sebi:WTM/AN/WRO/WRO/31598/2025-26

SEBI · SEBI · 2025-01-15 · Ananth Narayan G., Whole Time Member

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Facts / Headnote

Noticee held jointly and severally liable with Prowise Capital and its other partners to refund INR 2,23,404.10 collected during her partnership period; no fresh debarment imposed, with alternative of depositing amount with SEBI with lien for ongoing recovery proceedings.

Provisions invoked

• s. 19
• s. 12(1)
• s. 28A
• s. 25

Regulations

• Reg. 3(1)
• Reg. 4(2)(k)

Parties

• Swati Purwar

Holding

Swati Purwar, as partner of Prowise Capital from January 15, 2016 to March 15, 2016, is jointly and severally liable to refund INR 2,23,404.10 collected during that period for unregistered investment advisory activity, with no further debarment.

Full text

Final Order in respect of Swati Purwar in the matter of Prowise Capital Page 2 of 10 of Fraudulent and Unfair Trade Practices relating to Securities Market), 2003 (“PFUTP Regulations”).

Final Order in respect of Swati Purwar in the matter of Prowise Capital Page 3 of 10 B. REPLY 5. The contentions raised in the Noticee’s written submission dated April 16, 2025 and those made during the personal hearing are summarised below. 5.1. An unregistered partnership firm was formed on January 15, 2016 in the name of Prowise Capital, with 4 partners: Mr. Arun Jatav, Mr. Vaibhav Patil, Yogendra Gangrade and Ms. Swati Purvar (all Noticees to Final Order). The firm was formed with an aim to obtain SEBI registration as an Investment Adviser. During the relevant time, Ms. Swati was holding NISM Investment Adviser certificate. 5.2. The partnership deed is dated January 15, 2016. On January 27, 2016, the partners opened bank account of Prowise Capital with ICICI Bank, Indore. After opening the bank account, Ms. Swati had infused an initial capital amount of INR 49,282 on February 09, 2016. After the said payment, Ms. Swati had no transactions with Prowise Capital (bank statement of Prowise Capital is submitted). 5.3. Ms. Swati resigned on March 15, 2016 due to her pregnancy. Her resignation was accepted by partners of Prowise Capital. She had also requested Prowise Capital to remove her name from the partnership and bank account associated with it (resignation letter is submitted). After her resignation, she was not associated with Prowise Capital in any manner (including any communication or transactions with the partners). She has also not received any remuneration or share

Final Order in respect of Swati Purwar in the matter of Prowise Capital Page 4 of 10 5.5. During her tenure as partner of Prowise Capital, it had not received any communication from SEBI. Since Ms. Swati resigned in a short span of time, registering Prowise Capital with SEBI was beyond her scope and ability. Ms. Swati was neither part of any decisions taken nor involved in the day-to-day affairs of Prowise Capital. Two partners who were also Noticees (Mr. Vaibhav and Mr. Yogendra) had filed an affidavit dated August 05, 2020 with SEBI wherein they had inter alia confirmed that Ms. Swati had resigned within 2 months after formation of Prowise Capital. SEBI has not considered these affidavits while issuing interim directions. 5.6. SEBI has procured data from the website of Prowise Capital. The said website has been made after resignation of Ms. Swati. Her name is not mentioned on the said website. 5.7. Apart from the KYC document signed on January 21, 2016, no other document is available on record which has been signed by Ms. Swati. 5.8. The Noticee has relied on the judgments of the Hon’ble Supreme Court in the matter of Monaben Ketanbhai Shah & Anr. Vs. State of Gujarat & Ors. (AIR 2004 SC 4274), Katta Sujatha (smt.) vs. Fertilizers and Chemicals Travancore Ltd. [(2002) 7 SCC 655] and the judgment of Hon’ble High Court of Gujarat in the matter of Jani Nautamal Venishankar, Wadhwan vs. Shri. Vivekanand Co- operative Housing Society Limited and Ors. [AIR 1986 Guj 162]. 5.9. Dur

Source: SecMarx — sebi:WTM/AN/WRO/WRO/31598/2025-26. 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.