sebi:WTM/RKA/ISD/32/2013
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Facts / Headnote
Interim ex-parte order restraining the noticees from buying, selling or dealing in the securities market directly or indirectly, directing them to cease acting as investment advisers and portfolio managers, and to withdraw all advertisements and representations relating to such activities, pending investigation.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
- s. 11C
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 2
- Reg. 3(1)
- Reg. 2(m)
Parties
- Mr. Imtiyaz Hanif Khanda (proprietor of M/s Right Trade and M/s Sai Traders)
- Mr. Vali Mamad Habib Ghaniwala (proprietor of M/s Bull Trader and M/s Laxmi Traders)
Holding
The Whole Time Member prima facie found that Mr. Imtiyaz Hanif Khanda and Mr. Vali Mamad Habib Ghaniwala acted as investment advisers and portfolio managers without registration in violation of section 12(1) of the SEBI Act read with the Investment Advisers Regulations and Portfolio Managers Regulations, and that their conduct was prima facie fraudulent under the PFUTP Regulations. An interim ex-parte order was passed restraining them from dealing in securities and directing them to cease unregistered advisory and portfolio management activities pending investigation.
Full text
Page 2 of 10 • We create & manage your Portfolio with short term & long term returns using Fundamental Analysis and our Experience. •
Page 3 of 10 most of the transactions were cash deposits from various parts of the country and cash was withdrawn therefrom through ATMs. It was observed from the bank account details that M/s Right Trade and M/s. Sai Traders have common address. Further, M/s Bull Trader and M/s. Laxmi Traders have the common address.
Page 4 of 10 Mr.Vali Mamad Habib Ghaniwala is proprietor of M/s Bull Trader and M/s Laxmi Traders, and the above mentioned common address of M/s Bull Trader and M/s Laxmi Traders is his residential address. Mr. Vali Mamad Habib Ghaniwala stated on oath before the Investigating Authority inter alia that : i. He is the maternal uncle of Mr. Imtiyaz Hanif Khanda. ii. He has no knowledge of the stock market and he is not registered with SEBI in any manner. He has no knowledge about M/s Bull Trader and M/s Laxmi Traders or the ICICI Bank accounts linked with them. He had merely signed the Know Your Client documents as directed by Mr. Imtiyaz Hanif Khanda. iii. He was aware that “M/s Right Trade and M/s Sai Traders advise on stock market trading, seeking clients to subscribe to them and do business on profit-loss sharing. They send SMS to enrol/advertise to clients.
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Source: SecMarx — sebi:WTM/RKA/ISD/32/2013. 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.