sebi:WTM/SR/SEBI/EFD-DRA2/51/08/2017
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Facts / Headnote
Directions issued: prohibition on mobilizing/pooling fresh funds; refund of monies collected with 10% p.a. interest or promised returns (whichever higher) within 90 days; inventory of assets; 10-year ban on accessing securities market and associating with SEBI-registered intermediaries.
Provisions invoked
- s. 19
- s. 12(1)
- s. 12A
Regulations
- Reg. 11
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 11(1)
Parties
- Mr. Venkatesan Chandran (PAN: AADPC7641J)
- Ms. K. Vijaya Bharathi (PAN: ABZPV9915D)
- M/s Sri Ganesh Stocks and Shares
Holding
The Noticees were found to have violated Section 12(1), 12A(a),(b),(c) of the SEBI Act read with Regulation 11(1) of the Brokers Regulations, Regulation 3 of the PMS Regulations, and Regulations 3(b),(c),(d), 4(1), 4(2)(k) of the PFUTP Regulations by soliciting funds from the public through advertisements promising assured returns, entering into private agreements resembling discretionary portfolio management, and executing trades without registration. They were directed to refund collected monies with interest within 90 days and barred from the securities market for 10 years.
Full text
Page 2 of 18 MIRSD/DR-1/CIR-16/09 dated November 06, 2009, SEBI passed an ad interim ex-parte order dated April 08, 2015 (' ex-parte order') with the following directions: i. “restrain Sri Ganesh Stocks and Shares, Mr. C. Venkatesan, (PAN AADPC7641J) and Ms. Vijaya Bharathi K. (PAN ABZPV9951D) from accessing the securities market and further prohibit them from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner; ii. (ii) direct Sri Ganesh Stocks and Shares, Mr. C. Venkatesan and Ms. Vijaya Bharathi K. to cease and desist from undertaking the portfolio management activities or any unregistered activity in securities market, directly or indirectly, in any manner whatsoever; iii. direct Sri Ganesh Stocks and Shares, Mr. C. Venkatesan and Ms. Vijaya Bharathi K. to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites, etc. in relation to the portfolio management activities or any unregistered activity in securities market; iv. prohibit Sri Ganesh Stocks and Shares, Mr. C. Venkatesan and Ms. Vijaya Bharati K. from mobilizing funds from its clients or other general investors or offering any PMS related activities.”
Page 3 of 18 opened in the said name. No contract was signed in the said name. They did not have a rubber stamp in the said name. Venkatesan also submitted a list of 64 investors along with repayments made to them. It was also admitted by Venkatesan that there was a difference in figures submitted by him to the NSE officials and the latest list. Venkatesan also stated that the difference in the amount paid was due to the fact that they did not maintain proper accounts and from the Bank accounts they could not make out the payee name. Vide the said e-mail, Venkatesan once again sought extension of time to file a detailed reply. However, no detailed reply has been subsequently filed by him or the other entities till date.
Page 4 of 18 regulations. Section 12A of the SEBI Act- Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control. "12A. No person shall directly or indirectly—
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA2/51/08/2017. 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.