sebi:WTM/AS/MIRSD/MIRSD-SEC-6/31009/2024-25
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Facts / Headnote
Noticees found liable for unregistered investment advisory activities and fraudulent conduct; directed to refund INR 17,20,76,616 to investors via escrow account, monetary penalties imposed, and Noticee No. 1 debarred for one year while Noticees 2-7 debarred for six months from accessing the securities market.
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 12(1)
- s. 12A
- s. 15J
- s. 15H
- s. 15F
- s. 15E
Regulations
- Reg. 3
- Reg. 5
- Reg. 3(1)
Parties
- Mohammad Nasiruddin Ansari (Noticee No. 1)
- Rahul Rao Padamati (Noticee No. 2)
- Tabraiz Abdullah (Noticee No. 3)
- Asif Iqbal Wani (Noticee No. 4)
- Golden Syndicate Ventures Pvt. Ltd. (Noticee No. 5)
- Mansha Abdullah (Noticee No. 6)
- Jadav Vamshi (Noticee No. 7)
Holding
The activities carried out in the name of 'Baap of Chart' constituted unregistered investment advisory services in contravention of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations, and the Noticees also engaged in fraudulent and manipulative conduct violating Section 12A of the SEBI Act read with the PFUTP Regulations. All seven Noticees were held liable — Nasir as the primary provider of investment advice, and the remaining Noticees for aiding and abetting the unregistered advisory business.
Full text
Order in the matter of unregistered investment advisory activities by Baap of Chart Page 2 of 49 to as “IA Regulations”). Further, the activities of the Noticees were also prima facie fraudulent and manipulative and in violation of provisions of Section 12A of SEBI Act read with Regulations 3 (a), (b), (c) and (d), 4(1) and 4(2)(k) and 4 (2) (s) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”). By the Interim
Order in the matter of unregistered investment advisory activities by Baap of Chart Page 3 of 49 52.6 Noticee Nos. 1, 2 and 5 are directed to provide a full inventory of all assets held in their names, jointly or severally, whether movable or immovable, or any interest or investment or charge on any of such assets, including details of all bank accounts, demat accounts and mutual fund investments, immediately but not later than 15 days from the date of receipt of this Order;
Order in the matter of unregistered investment advisory activities by Baap of Chart Page 4 of 49 2. The Interim Order was also in the nature of a show cause notice wherein the Noticees were provided with the opportunity to file their objections/ reply, if any, within 21 days from the date of the order and were also provided with an opportunity of personal hearing before SEBI, on a date and time to be fixed. In this regard, the Interim Order states the following:
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Source: SecMarx — sebi:WTM/AS/MIRSD/MIRSD-SEC-6/31009/2024-25. 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.