sebi:WTM/MB/IMD/WRO/ILO/122/2020-21
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Facts / Headnote
Interim ex-parte order issued restraining Max Capital and its proprietor from acting as an investment adviser, freezing bank accounts, and issuing show cause notice as to why directions including refund and market access prohibition should not be issued.
Provisions invoked
- s. 11
- s. 19
- s. 12(1)
- s. 12A
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 2
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(l)
Parties
- Max Capital
- Mr. Mahesh Tillore
Holding
Prima facie, Max Capital was holding itself out and acting as an unregistered investment adviser in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations, and its conduct was prima facie fraudulent in violation of Section 12A(c) of the SEBI Act and Regulations 3(a), (b), (c), (d) and 4(1) and 4(2)(k) of the PFUTP Regulations. Urgent interim ex-parte directions were issued restraining the Noticee from acting as an investment adviser, freezing bank accounts and assets, and requiring withdrawal of all websites and representations.
Full text
Interim Order in the matter of M/s. Max Capital Page 2 of 22 2. With a view to determine if unregistered investment advisory activities are being carried out through www.maxcapital.info, a preliminary examination was carried out in this matter and the, prima facie, findings of the same are given in the succeeding paragraphs.
Interim Order in the matter of M/s. Max Capital Page 3 of 22 4. The complainant also attached the payment receipt which showed the contact details of the entity as info@maxcapital.info and mobile number as 9826200935. These details were the same as seen on the website www.maxcapital.info. The website and particulars of its bank accounts were perused to gather information. As on July 15, 2020, the aforesaid website is no longer active. On visiting the website, the following message is displayed: “403 Forbidden”. However, during the course of preliminary examination, the archived pages of the website were viewed from web.archive.org and have been examined.
Interim Order in the matter of M/s. Max Capital Page 4 of 22 advisor for rendering such services. Thereafter, in order to gather additional information of its activity and for examining the same, KYC (Account Opening Forms - AOF) and transaction/ account statement of bank accounts of the Noticee were sought from Andhra Bank Ltd., HDFC Bank Ltd. and Easebuzz.
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Source: SecMarx — sebi:WTM/MB/IMD/WRO/ILO/122/2020-21. 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.