sebi:WTM/RKA/IVD/NRO/10/2012
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Facts / Headnote
Charge (a) upheld - noticees found to have solicited and offered portfolio management services without registration; charge (b) against Mr. Amaranjay for services to Mr. Rathore - benefit of doubt given; interim restraints dated October 11, 2010 and June 01, 2011 not to continue; preventive and remedial directions issued under Sections 11, 11(4) and 11B
Provisions invoked
- s. 19
- s. 11(1)
- s. 12(1)
Regulations
- Reg. 3
Parties
- Credent Portfolio Management Private Limited
- Mr. Mritunjay Kumar
- Mr. Amaranjay Kumar
Holding
The noticees were held to have violated Section 12(1) of the SEBI Act read with Regulation 3 of the SEBI (Portfolio Managers) Regulations, 1993 by soliciting the general public and offering portfolio management services through website representations without being registered as a portfolio manager with SEBI. However, the charge that Mr. Amaranjay offered portfolio management services akin to Mr. Rathore was not proved, and the earlier interim restraints were not to continue.
Full text
Page 2 of 7 2. While the SEBI investigations were on-going, these directions were confirmed vide order dated June 1, 2011. After completion of the investigation, SEBI issued a show cause notice (SCN) dated December 14, 2011 to Credent Portfolio Management Private Limited (“the company”) and its directors viz. Mr. Mritunjay Kumar and Mr. Amaranjay Kumar (herein after collectively called “noticees”) alleging that they had carried out portfolio management services without obtaining registration from SEBI and therefore had contravened section 12(1) of the SEBI Act read with regulation 3 of the SEBI ( Portfolio Managers) Regulations, 1993 ( Portfolio Managers Regulations). They were called upon to show cause as to why suitable directions under section 11(1), 11(4) (b) and 11B of the SEBI Act including direction of restraining them from accessing the securities market and prohibiting them from buying, selling or dealing in securities for an appropriate period and any other directions as deemed fit and proper, should not be issued against them.
Page 3 of 7 web content nor it has launched any portfolio management scheme. Also each page of the website displayed important caution message for the use and benefit of investors “Mutual Fund markets are subject to market risks. Please read the offer documents carefully before investing.”
Page 4 of 7 g. The noticees have been restrained from accessing the securities market for more than 16 months and they are deprived of their main source of livelihood. In view of the above
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Source: SecMarx — sebi:WTM/RKA/IVD/NRO/10/2012. 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.