sebi:WTM/MPB/SEBI/EFD-DRA4/153/2018
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Noticee held to have provided unregistered investment advisory and research analyst services; directed to refund Rs. 7,35,06,557 collected from October 22, 2013 to April 20, 2016, issue public notice, submit peer-reviewed CA certificate, and debarred from securities market and association with listed/public fundraising companies and SEBI-registered intermediaries for 4 years from date of refund.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 12(1)
- s. 12
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 3(1)
- Reg. 2(m)
- Reg. 2(g)
- Reg. 2(l)
- Reg. 2(u)
- Reg. 2(w)
Parties
- Mr. Anirudh Sethi
Holding
Mr. Anirudh Sethi acted as an unregistered investment adviser and research analyst in violation of section 12(1) of the SEBI Act and regulation 3(1) of the IA Regulations and regulation 3(1) of the RA Regulations, and was directed to refund fees collected and subjected to 4-year market debarment from date of refund.
Full text
Order in the matter of Mr. Anirudh Sethi Page 2 of 25 2. Subsequently, in January 2016, SEBI noted that the Noticee was providing services as an investment adviser and research analyst and offering payment based subscription plans through his website www.anirudhsethireport.com.
Order in the matter of Mr. Anirudh Sethi Page 3 of 25 We are neither covered under SEBI (Investment Advisers) Regulations….. for the simple reason that we do not impart investment advice to the investors for strategic sale or purchase of security nor we are subscribing to any article or advisory portion in any newspaper… However, if SEBI makes it imperative within framework of law, Rules, regulations, we may get registration as required provided our activities captioned above as an association is established to be attracting the jurisdiction of SEBI Regulations.”
Order in the matter of Mr. Anirudh Sethi Page 4 of 25 7. Vide email dated April 28, 2016, Mr. Anirudh Sethi was advised to provide the following additional information: a. Details of the transactions where an amount of Rs. 36,000 had been credited to his account, details of the counter parties and reason for the transaction along with supporting documents; b. Details about the ownership of the website along with the documentary evidence for the same and details of his arrangement/agreement with the owner of the website; c. Details of the scheme ‘Fatal Attraction’ displayed in the website, details of the e-mails received from investors and the details of fees collected from such clients. 8. Mr. Anirudh Sethi in his reply email dated May 05, 2016 submitted as under: a. “Taken Rs. 36,000 from traders/Investors or participants who want Financial Advice on Global Market (of every segment ) in general on various facets of internal economic updation on commodity, currency market and security market etc. and we are organizing Seminars on Technical Analysis and Trading Psychology to update the knowledge base of participants including traders, brokers, domestic investors and hence on account of the cost of holding the seminars, lecture meetings, interactive deliberations and mutual consultations, the charges are collected for Seminars and Books and Education Material we give to participants. b. AnirudhsethiReport is owned by Mr. Jim John of USA and he is handling the blog and we are ju
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Source: SecMarx — sebi:WTM/MPB/SEBI/EFD-DRA4/153/2018. 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.