sebi:WTM/PS/15/IMD/WRO-ILO/JUNE/2015
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Facts / Headnote
Directions issued prohibiting Mr. Ravi Chouksey and Gravita Research Company from buying, selling or otherwise dealing in the securities market for 4 years; directed to return monies received from clients within 3 months; SEBI may initiate adjudication proceedings.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12(1)
- s. 12
Regulations
- Reg. 3(1)
- Reg. 2(m)
Parties
- Mr. Ravi Chouksey
- Gravita Research Company
Holding
The noticee, Mr. Ravi Chouksey and his proprietorship concern Gravita Research Company, was found to have functioned as an 'investment adviser' in the securities market without obtaining a certificate of registration from SEBI as mandated under section 12(1) of the SEBI Act and Regulation 3(1) of the IA Regulations. Directions were issued prohibiting them from dealing in the securities market for 4 years and requiring return of monies collected from clients.
Full text
Page 2 of 8 3. The interim order was issued without prejudice to the right of SEBI to take any other action that may be initiated against Mr. Ravi Chouksey and his proprietary firm, Gravita Research Company, in accordance with law. Further, the interim order was a show cause notice and the noticee (i.e., Mr. Ravi Chouksey and his proprietary firm Gravita Research Company) was advised to show cause as to why appropriate directions, under the SEBI Act and relevant SEBI Rules/Regulations including direction, prohibiting them from buying, selling or otherwise dealing in securities market, either directly or indirectly, in any manner whatsoever, should not be taken against them.
Page 3 of 8 i) The noticee is a strong believer of laws and regulations, which are made to protect the interest of general public, and this was the reason for initiating the registration process on receipt of enquiry letter from SEBI dated August 13, 2013. j) The noticee’s motto is to serve clients on the basis of exemplary technical research. None of its recommendations were ever made without having an embracive and strong analysis behind it. k) It did not do any act which is detrimental to the investors and that there were no investors’ complaints against it.
Page 4 of 8 request regulators to guide us with the procedure to regularize our activities and charge any penalty as it may deem fir for the mistake. We enclose a provisional profit and loss account for the tenure 27/03/2014 to 23/12/2014 for calculation of penalty….. If you allow us for registration as an Investment Advisor then we will give application ….. We also hope that regulators will investigate considering the fact that we are new to the regulatory environment and are committed to ensure compliance in words and in spirit.” (v) The noticee requested SEBI to view its application favourably.
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Source: SecMarx — sebi:WTM/PS/15/IMD/WRO-ILO/JUNE/2015. 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.