sebi:WTM/SM/SRO/SRO/15641/2021-22
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Facts / Headnote
Noticees held liable for unregistered investment advisory activity; directed to refund INR 40,33,790 to investors within 3 months, issue public notice, resolve complaints, debarred from securities market for 6 months, restrained from associating with listed/SEBI-registered entities for 6 months, and prohibited from undertaking investment advisory services without registration.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12(1)
- s. 25
Regulations
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- Right Target Advisory Services (Noticee no. 1)
- Mr. M Ashok Kumar (Noticee no. 2)
- Mr. D Murugan (Noticee no. 3)
- Mr. D Saravanan (Noticee no. 4)
- Mr. D Kumar (Noticee no. 5)
Holding
The Noticees, acting through their partnership firm, were engaged in unregistered investment advisory services in violation of Section 12(1) of the SEBI Act read with Regulation 3(1) of the IA Regulations, 2013. They were directed to refund INR 40,33,790 collected from investors, debarred from the securities market for 6 months, and restrained from undertaking investment advisory services without registration.
Full text
Final Order in the matter of Right Target Advisory Services Page 1 of 28 WTM/SM/SRO/SRO/15641/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA CORAM: S. K. MOHANTY, WHOLE TIME MEMBER
Final Order in the matter of Right Target Advisory Services Page 2 of 28 2. It is noted in the course of the said preliminary examination that the website https://righttarget.in/ was active at that time in which the firm had presented itself as an Investment Adviser/Tips Provider. The website of the firm had also contained information that it was offering packages in stocks trading/investment tips in cash, futures and options segments to its clients as part of its investment advisory services.
Final Order in the matter of Right Target Advisory Services Page 3 of 28 Noticee no. 2 was mentioned as a contact person in the merchant details submitted by CC Avenue and all the three partners viz. Noticees no. 2 to 4 had signed the agreement with CC Avenue as the partners of Noticee no. 1.
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Source: SecMarx — sebi:WTM/SM/SRO/SRO/15641/2021-22. 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.