sebi:WTM/GM/WRO/WRO/14066/2021-22
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Facts / Headnote
Altamash Sheikh, proprietor of Samrat Trades, restrained from accessing/dealing in securities market and from holding director/key managerial personnel positions and associating with listed/public fundraising companies or SEBI-registered intermediaries for 4 years; directed to resolve all SCORES and other complaints within 3 months with Chartered Accountant-certified compliance report, failing which additional restraint of 2 years or till compliance, whichever is later; interim directions 42.1.3 and 42.3 continued till compliance.
Provisions invoked
- s. 12(1)
- s. 12
- s. 11
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(2)
- Reg. 15
- Reg. 5
- Reg. 15(1)
- Reg. 3(1)
- Reg. 4(2)(k)
- Reg. 15(9)
Parties
- Samrat Trades
- Altamash Sheikh, proprietor of Samrat Trades (PAN: CPPPS6004G)
Holding
Altamash Sheikh carried out unregistered investment advisory services as partner of Proficient Research, obtained investment adviser registration for Samrat Trades by furnishing false information, and as a registered adviser promised assured returns and mis-sold products through misleading statements. He was held to have violated Section 12(1) of the SEBI Act, IA Regulations and PFUTP Regulations and was restrained from the securities market for 4 years with directions to resolve investor complaints.
Full text
Final Order in the Matter of Samrat Trades (Proprietor Altamash Sheikh) Page 1 of 30 WTM/GM/WRO/WRO/14066/2021-22 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
Final Order in the Matter of Samrat Trades (Proprietor Altamash Sheikh) Page 2 of 30 analysis of the details available on the website of Proficient Research and Samrat Trades, complaints filed by the complainants against Proficient Research and Samrat Trades and bank account details of Proficient Research and Samrat Trades.
Final Order in the Matter of Samrat Trades (Proprietor Altamash Sheikh) Page 3 of 30 deposits were observed in the account of Proficient Research from July 2014 to December 2016. So, Proficient Research had received amounts towards advisory services from July 2014 to December 2016. As Proficient Research was a partnership firm, the Partners were responsible for the conduct of the business of the firm and were liable for any non-compliance. As per 3(1) of IA Regulations and Section 12(1) of SEBI Act, any person carrying out investment advisory activities has to necessarily obtain registration from SEBI and conduct its activities in accordance with the provisions of the SEBI Act/IA regulations. So, to carry out investment advisory services registration with SEBI was mandatory. The characteristics and features of the business activity being carried out by Proficient Research during the period June 13, 2014 to December 2016 was in the nature of investment advisory services, and were being done without a certificate of registration from SEBI. So, the Interim Order has alleged that being a partner of Proficient Research, Altamash Sheikh had carried out unregistered investment adviser activities through Proficient Research from June 13, 2014 to December 2016 thereby prima facie violating Section 12(1) of SEBI Act read with Regulations 3(1) of the IA Regulations. B. For obtaining registration from SEBI under IA regulations, an applicant has to submit an application in the prescribed
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Source: SecMarx — sebi:WTM/GM/WRO/WRO/14066/2021-22. 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.