sebi:WTM/SM/WRO/WRO/23094/2022-23
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Facts / Headnote
Held Agrich Traders through its proprietor acted as unregistered investment adviser in violation of Section 12(1) SEBI Act read with regulation 3(1) IA Regulations and directed the firm / proprietor to refund INR 1,26,28,408 collected as fees within three months through public notice and banking channels, resolve pending complaints, file CA-certified compliance report, and deposit any undistributed balance with SEBI.
Provisions invoked
- s. 19
- s. 12(1)
- s. 91
Regulations
- Reg. 2(1)(l)
- Reg. 3(1)
- Reg. 2(1)(m)
Parties
- Agrich Traders
- Mr. Prakash Shyamlal Rathod
Holding
Agrich Traders, a sole proprietorship of Mr. Prakash Shyamlal Rathod, provided investment advice for consideration without SEBI registration in violation of Section 12(1) of the SEBI Act read with regulation 3(1) of the IA Regulations. The firm / proprietor was directed to refund the entire INR 1,26,28,408 credited to its two bank accounts to investors/clients.
Full text
_____________________________________________________________________________________________________________ Final Order in the matter of Agrich Traders Page 2 of 26
_____________________________________________________________________________________________________________ Final Order in the matter of Agrich Traders Page 3 of 26 highly accurate recommendations and consistent profits in any market through the aforesaid website and monies were continuously being collected from the investors in the aforesaid two bank accounts by offering them various investment advisory packages in an unauthorized manner, it was deemed necessary by SEBI to take urgent and preventive action in this matter to stop the firm from collecting any more fees from the public and from indulging in such unauthorized investment advisory activities. Therefore, an ex-parte ad Interim Order dated December 15, 2020 (hereinafter referred to as “Interim Order”) under Sections 11, 11(4), 11B(1) and 11D read with Section 19 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) was passed wherein the above activities of the firm were prima facie held to be in violation of the provisions of Section 12(1) of the SEBI Act read with regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013 (hereinafter referred to as “IA Regulations”).
_____________________________________________________________________________________________________________ Final Order in the matter of Agrich Traders Page 4 of 26 iii. Not to dispose of or alienate any assets, whether movable or immovable, or any interest or investment or charge on any of such assets held in their name, including money lying in bank accounts except with the prior permission of SEBI.
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Source: SecMarx — sebi:WTM/SM/WRO/WRO/23094/2022-23. 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.