sebi:WTM/SM/IMD/IMD-II_DOF7/22531/2022-23
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Facts / Headnote
Noticees No. 1 to 5 restrained from accessing/dealing in securities market for 5 years; Noticees No. 2 to 5 restrained from holding director/managerial position in listed public company, public company intending to raise money, or SEBI-registered intermediary for 5 years; DS Capital directed to resolve SCORES complaints within 30 days and furnish CA-certified compliance report within 3 months, failing which additional 3-year restraint.
Provisions invoked
- s. 19
Regulations
- Reg. 3
- Reg. 13
- Reg. 9
- Reg. 25
- Reg. 28
- Reg. 4(2)
- Reg. 21
- Reg. 23
- Reg. 13(b)
Parties
- D.S. Capital Venture Pvt. Ltd.
- Sanjay Kumar Dwivedi
- Piyush Kumar Sharma
- Deepali Sharma
- Abhishek Tiwari
Holding
DS Capital and its Directors (Noticees No. 2 to 5) were held to have violated IA Regulations and PFUTP Regulations for non-redressal of investor grievances, obstructing inspection, non-disclosure of material changes, and mis-selling through assured returns, and were restrained from the securities market for five years with remedial directions.
Full text
Final Order in the matter of D.S. Capital Venture Pvt. Ltd. Page 2 of 25 of DS Capital was approved by SEBI, so as to examine the compliance of various regulatory stipulations laid down for an IA under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the “SEBI Act”), IA Regulations, circulars/guidelines framed and issued for the compliance by Investment Advisors. However, DS Capital was not reachable at any of the addresses (3 in nos.) available with SEBI including at its registered and correspondence addresses. Therefore, the examination of the affairs of DS Capital was done inter alia on the basis of investors complaints, details available on website of DS Capital and details available with its bank account. Based on the said examination conducted by SEBI, certain violations of provisions of securities laws were found to have been allegedly committed by DS Capital. The findings, as observed during the examination, are briefly mentioned herein below: 2.1. DS Capital and its Directors have failed to redress the complaints forwarded through SCORES despite reminders were sent to it. 2.2. DS Capital and its Directors have failed to reply to the inspection notice / pre-inspection questionnaire sent to it by speed post as well as by email. 2.3. DS Capital and its Directors have not informed SEBI with regard to change of its registered address. 2.4. DS Capital and its Directors have not obtained approval from SEBI for updation / change of Directors.
Final Order in the matter of D.S. Capital Venture Pvt. Ltd. Page 3 of 25 3.2. regulations 3 (d) and 4 (2)(s) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Final Order in the matter of D.S. Capital Venture Pvt. Ltd. Page 4 of 25 6.2. He has nothing to do either with the clients of DS Capital or with the employees of DS Capital. Therefore, he is not in apposition to answer the queries raised by SEBI. 6.3. The business of DS Capital was run by Noticee No. 4. 6.4. He is no longer associated with DS Capital in the capacity of an Additional Director from September 16, 2019 onwards.
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Source: SecMarx — sebi:WTM/SM/IMD/IMD-II_DOF7/22531/2022-23. 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.