sebi:WTM/ASB/WRO/WRO/29599/2023-24
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Provisions invoked
- s. 19
- s. 12A
- s. 12
- s. 12(3)
- s. 180
Regulations
- Reg. 4
- Reg. 3
- Reg. 13
- Reg. 4(1)
- Reg. 16
- Reg. 9
- Reg. 25
- Reg. 15
- Reg. 3(a)
- Reg. 13(a)
- Reg. 24
- Reg. 28
- Reg. 27
- Reg. 15(9)
- Reg. 16(b)
- Reg. 16(e)
- Reg. 25(1)
- Reg. 27(1)
- Reg. 16(d)
- Reg. 16(a)
Parties
- Profit Guru
- Satish Shukla
Holding
The Designated Authority found Profit Guru had contravened provisions of the SEBI Act, the IA Regulations and the PFUTP Regulations and recommended cancellation of its Certificate of Registration, and the deciding authority concurred that the Noticee failed to furnish information and cooperate during inspection and promised assured/guaranteed returns.
Full text
Order in the Enquiry Proceedings Against Profit Guru (Prop: Satish Shukla) Page 2 of 62 of account and other records would commence from December 09, 2019 onwards. Subsequently, the Noticee vide a letter dated December 04, 2019 informed that one Arvinder Ajmani had been authorised to represent the Noticee before SEBI, with respect to the concerned inspection. However, on the appointed date, the inspection could not be carried out, as no authorised personnel of the Noticee were present. 1.4. Pursuant to an attempted inspection of the books of account of Profit Guru on December 09, 2019, an examination was carried out to verify the veracity of the information brought out in the complaints and ascertain whether there had been any violation of the provisions of the Securities and Exchange Board of India Act, 1992 (the “SEBI Act”), the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (the “IA Regulations”), SEBI Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (the “PFUTP Regulations”) and any circulars framed thereunder.
Order in the Enquiry Proceedings Against Profit Guru (Prop: Satish Shukla) Page 3 of 62 a. failed to furnish information as sought for by SEBI and not cooperated with SEBI by being absent during inspection; b. promised assured/guaranteed unrealistic returns to its clients; c. sold multiple services and collected unreasonable payments from its clients; d. charged unfair and unreasonable fees for the same kind of services and offered customised packages; e. changed the risk profile forms (“RPF”) of its clients multiple times on an arbitrary basis; f. did not follow guidelines regarding risk profiling and suitability assessment of the clients; g. included leading questions in the RPF; and h. violated the conditions of the certificate of registration.
Order in the Enquiry Proceedings Against Profit Guru (Prop: Satish Shukla) Page 4 of 62 the SCN on January 19, 2023 and hearing was conducted on January 27, 2023. 2.6. Consequently, the DA enquired into the above-mentioned violations, and in his report dated March 24, 2023 (“Enquiry Report”), found that Profit Guru had contravened various provisions of the SEBI Act, the IA Regulations and the PFUTP Regulations . 2.7. In view of the same, the DA in terms of Regulation 27 of the Intermediaries Regulations recommended that the Certificate of Registration of Profit Guru be cancelled.
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Source: SecMarx — sebi:WTM/ASB/WRO/WRO/29599/2023-24. 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.