sebi:WTM/ASB/WRO/WRO/22345/2022-23
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Facts / Headnote
Violation established ex-parte; refund, escrow, asset-freeze and 3-year debarment directions issued
Provisions invoked
- s. 19
- s. 12(1)
- s. 12
Regulations
- Reg. 3
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(l)
Parties
- Moneytree Research (Proprietor-Narendra Madan Rathod)
- Narendra Madan Rathod
Holding
The Noticee acted as an unregistered Investment Adviser in violation of Section 12(1) of the SEBI Act, 1992 read with Regulation 3(1) of the IA Regulations and was directed to refund Rs.41,07,013 to investors/clients with a 3-year securities market debarment and related directions.
Full text
Order in the matter of Moneytree Research (Proprietor-Narendra Madan Rathod) Page 2 of 10 (b) The Noticee had opened a bank account (no. 144105001048) with ICICI Bank, Indore Branch, in the name of Moneytree Research. The Noticee had also opened an account with PayU Money, a payment Gateway, which was linked to the abovementioned bank account with ICICI Bank. (c) From the examination of aforesaid bank account, it is observed that during the period June 20, 2017 to November 05, 2018, total credits of Rs.41,07,013 were received in the said bank account through numerous credit transactions, out of which Rs.1,15,510 was received through PayU Money Gateway. (d) As per the Account opening form submitted to ICICI Bank (Account. No: 144105001048), the said bank account was operated by Shri Narendra Madan Rathod and he was the sole proprietor of Moneytree Research. Further, as per the interview / visit report, nature of activity was shown as advisory. Further, in the certificate issued by Indore Municipal Corporation, which was submitted to ICICI Bank by Shri Narendra Madan Rathod, the business activity was mentioned as Share Trading. (e) It thus appeared that the credits received in the bank account maintained with ICICI Bank were for providing stock tips under the guise of investment advice packages and the amount credited in the above bank account i.e. ₹41,07,013 could be treated as fees received by the Noticee for providing investment advisory services, offered through the aboveme
Order in the matter of Moneytree Research (Proprietor-Narendra Madan Rathod) Page 3 of 10 Service of SCN, Reply and Personal Hearing:
Order in the matter of Moneytree Research (Proprietor-Narendra Madan Rathod) Page 4 of 10 Consideration and findings – 4. Before proceeding further, I deem it important to refer to the provisions of law alleged to have been violated by the Noticee. The same are quoted hereunder
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Source: SecMarx — sebi:WTM/ASB/WRO/WRO/22345/2022-23. 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.