sebi:WTM/ASB/WRO/WRO/25063/2022-23
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Facts / Headnote
Violations established; Noticee directed to refund Rs. 1,23,17,120 with public notice and escrow mechanism, debarred from securities market for 3 years, restrained on assets/bank/demat accounts, and imposed total monetary penalty of Rs. 7 lakh.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12(1)
- s. 11B
- s. 12
- s. 11
- s. 15H
- s. 15J
- s. 15
- s. 15F
- s. 15E
Regulations
- Reg. 3
- Reg. 3(b)
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(l)
Parties
- M/s Smart Investment Services (Prop- Ms. Rinkee Prajapati)
- Rinkee Prajapati - Proprietor, Smart Investment Services
Holding
The Noticee acted as an unregistered investment adviser in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the Investment Advisers Regulations and engaged in fraudulent practices under Sections 12A(a)-(c) and PFUTP Regulations, and was therefore directed to refund Rs. 1,23,17,120, debarred for 3 years, and penalized Rs. 7 lakh.
Full text
Order in the matter of M/s Smart Investment Services- (Prop- Ms. Rinkee Prajapati) 2 / 23 3. In order to protect the interests of investors and the integrity of securities market, the following directions under Sections 11(1), 11(4), 11B and 11D of the SEBI Act, 1992 were issued vide the Interim Order, to the Noticee:
Order in the matter of M/s Smart Investment Services- (Prop- Ms. Rinkee Prajapati) 3 / 23 activity of investment advisory services, including the activity of acting and representing through any media (physical or digital) as an investment advisor, directly or indirectly, till further orders. viii. The Banks are directed not to allow any debits /withdrawals from or credits to the accounts of the Noticee, held jointly or severally, without the permission of SEBI. The Banks are directed to ensure that all the above
Order in the matter of M/s Smart Investment Services- (Prop- Ms. Rinkee Prajapati) 4 / 23 default was in the nature of non–compliance with the provisions of the Investment Advisers Regulations, 2013. c. With respect to the complaint received by SEBI, she submitted that: (i) The firm name is M/s Smart Investment Services Pvt. Ltd.; however, the website name is www.careinvestmentservices.com. The mention of M/s Care Investment Services Pvt. Ltd. was a typographic error which the Noticee could not rectify due to an oversight. Money was collected through the aforesaid website, which is owned by Smart Investment, the Noticee’s proprietary firm. (ii) The was no procedure to issue separate payment receipts for amounts received through PayUMoney as automated receipt is already generated and sent to the payee. However, she did not deny collection of fee /subscription from any of her clients. (iii) Further, after receipt of subscription fees, the service was duly provided timely basis via messages and the Complainant’s calls /grievances were addressed in a timely manner. d. The credits received in Smart Investment’s ICICI Bank Account for the period from July 6, 2017 to October 9, 2019, amounted to Rs. 1,23,17,120, including credits from PayUMoney payment gateway and the said credits included transactions other than investment advisory activities such as supplies for IT services to local municipal body.
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Source: SecMarx — sebi:WTM/ASB/WRO/WRO/25063/2022-23. 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.